This will delist tomorrow.  They were involved in a reverse takeover but havent issued a prospectus in 6 months.  As a result their holding has been suspended for 6 months so will be delisted.

RHM’s main asset PUCF want to go from being a media broker to being a media broker and renewable energy supplier – to counterbalance volatility in media brokerage.

It’s not all bad – current RHM market cap is £3.7m – as of latest RNS RHM owns 40% of PUCF, worth £6m and RHM has cash of £2.9m.

Unfortunately the vote is whether to participate in the rights for PUCF, however the vote is on 29th February.  The PUCF rights issue  – according to the RNS here closes on 24th February.  As a result the vote is meaningless – we will have subscribed to these regardless.

The solar panel investment must generate an incredible return to be better than simply returning the cash to investors and distributing PUCF shares – simply doing this would give me more than double the market cap!  In other words I would double my money, at nearly no risk.

What I find really shocking is other big holders of RHM havent done anything about it.  Management (Cheong Chia Cheieh) only has 22% of the votes.  He is easily outvoted by the other holders.

I would urge other holders to vote no to all resolutions and to then propose resolutions to remove the current management of RHM before returning all assets to shareholders.  Management are clearly not acting in shareholders interests.

I will write to the other shareholders – if I can find addresses/ call them  to try and get them to vote no and stop this.

Delistings are not all bad – ARCH Capital delisted and holders got double the closing price.  Still I am disappointed this has gone this way…  It is maing me think twice about investing in small AIM companies.