Equity Resources plc
LSE : EQRP

June 24, 2013 03:33 ET

Proposed Delisting from the ISDX Growth Market

                                                       
                                                                                                    24/06/2013
                                                                                                  GB00B0GQJ825
                                             EQUITY RESOURCES PLC
                                     ("Equity Resources" or the "Company")
                                                       
                                Proposed Delisting from the ISDX Growth Market

                                                       
The  Directors  of  Equity  Resources announce a letter has been sent to Shareholders  regarding  the  proposed
delisting of the Company's ordinary shares from the ISDX Growth Market.
                                                       
The text of the letter sent to shareholders is set out below.

The Directors of the Company are responsible for the contents of this announcement.

ENQUIRIES:
Equity Resources Plc
John Watkins, Chairman

Tel: 01483 771992
Email:  john@jwca.co.uk

Peterhouse Corporate Finance Limited
Corporate Adviser
Duncan Vasey and Mark Anwyl       Tel:  020 7220 9796
                                                       
                                                       
                                                       
                                                                                     
                                         
                                                                                    
                                                                                     
                                                                                     
                                                                                     
                                                                                                  24 June 2013
                                                                                     
                       THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION
                                                       
                                           LETTER FROM THE CHAIRMAN
                                                       
                                             Equity Resources Plc
        (Incorporated in England and Wales under the Companies Act 1985 with registered number 5453555)
                                                       
                                     ("Equity Resources" or the "Company")
                                                       
                                                       
Directors:                                                                                   Registered Office:
Mr John Watkins                              Chairman                                   5 London Wall Buildings
Mr Simon L McNeill-Ritchie                   Director                                                    London
Mr Arif B Virani                             Director                                                  EC2M 5NS


To the holders of Ordinary Shares

Dear Shareholder

                                Proposed Delisting from the ISDX Growth Market

Introduction

On 17 May 2013, the Directors of Equity Resources announced the suspension of trading in the Company's ordinary
shares  on  the ISDX Growth Market, pending clarification of the Company's financial position. The Company  has
today  announced  that it has given notice of its intention to cancel the admission of its ordinary  shares  to
trading on the ISDX Growth Market with effect from the close of business on 5 July 2013.

This  letter  sets the reasons for this action and explains why the Directors believe that it is  in  the  best
interests of the Company and its shareholders.


Background to and the reasons for the Delisting

Equity  Resources, formerly Franchise Investment Strategies plc, is an investment company, traded on the  ISDX-
Growth  Market,  focusing  on  investments in mineral exploration. The Company's current  underlying  portfolio
consists of holdings in Regency Mines plc and Red Rock Resources plc, both quoted on AIM.

During  the  last  year,  the  underlying portfolio has continued to fall in value, reflecting  the  continuing
decline  in  the  values of AIM mineral exploration traded companies.  The long-awaited  recovery  has  yet  to
materialise;  it  is  now  the Directors' belief that it may be 2014 before we see  an  improvement  in  market
sentiment.  In the meantime, the net asset value has continued to decline since the results for the year  ended
31  May  2012  were announced in September 2012 and is currently GBP50,000 or little more than 0.09  pence  per
ordinary share.

The  principal reasons for joining the market were for the increased potential to raise further  funds  in  the
future, to finance investments and to provide additional working capital for the Company.

However, as a result of limited liquidity on the market, it has become apparent that these objectives cannot be
met  and  as  a consequence the Board no longer feels able to justify the continued costs associated  with  the
Company's admission to the market - in excess of GBP20,000 per annum.

The Directors have therefore concluded that it is in the best interests of the Company and its shareholders for
the  Company to leave the market. By doing so, the Directors hope to preserve shareholder value by avoiding the
need to raise funds to meet these market expenses while the Company waits for the share price of the underlying
investments to recover.

The  Company  has  today notified the ISDX Growth Market of its intention to delist and it is anticipated  that
trading in the ordinary shares on the ISDX Growth Market will cease at the close of business on 5 July 2013.


Effect of Delisting on Shareholders

The  principal  effect of the delisting is anticipated to be a reduction in the liquidity and marketability  of
the  ordinary shares. There would no longer be a formal market mechanism enabling shareholders to  trade  their
ordinary  shares  on the ISDX Growth Market or any other recognised market or trading exchange.  The  Company's
CREST  facility  will also be cancelled and, although the ordinary shares will remain transferable,  they  will
cease to be transferable through CREST. Instead, shareholders who hold ordinary shares in CREST can request  to
receive a physical share certificate which will be despatched to them in due course following the delisting.

With  effect  from  delisting the Company will cease to be obliged to announce material events,  administrative
changes or material transactions as they occur and will not have to announce interim results. The Company  will
also no longer be required to comply with any of the additional specific corporate governance requirements  for
companies  admitted  to trading on the ISDX Growth Market.  The Company will, however, remain  subject  to  the
Takeover Code.

It  is,  however, the Directors' current intention to maintain an appropriate level of corporate governance  by
keeping shareholders informed by distributing copies of the final accounts.

Upon the delisting becoming effective, Peterhouse Corporate Finance Limited will cease to be the Company's ISDX
Corporate Adviser.


Dealing and Settlement Arrangements

Whilst the Board believes that the delisting is in the interests of shareholders as a whole, it recognises that
the  cancellation of the Company's admission to trading on the ISDX Growth Market will make it  more  difficult
for  shareholders to buy and sell ordinary shares should they wish to do so. Accordingly, the Board intends  to
match  buyers with sellers after delisting has taken effect. The Company will also look after the  Register  of
Members following the delisting.


Withdrawal process and Shareholder Support

Under the ISDX Rules, a Company is required to give shareholders a period of 10 business days in which to lodge
an  objection to the intended withdrawal of its securities from the ISDX Growth Market. Should any  shareholder
wish to lodge an objection they should contact ISDX at isdx-regulation@icap.com in confidence before the 4 July
2013.  If,  during the notice period, any legitimate objection is raised to the proposed withdrawal,  then  the
withdrawal will become conditional upon the Company passing a Special Resolution approving the withdrawal at  a
general  meeting.  To be passed, a Special Resolution requires the approval of 75 per cent of shareholders  who
vote on the resolution.

The Board would like to thank shareholders for their past support.


Yours faithfully



John Watkins
Chairman

Business correspondence address: 67 Park Road, Woking, Surrey, GU22 7DH






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