E1 greenlit to become a Canadian company
Clears way to trade on London Stock ExchangeTORONTO -- A Cayman Islands court has greenlit E1 Entertainment moving its headquarters from the Caribbean tax haven to Canada.
E1, which trades on Britain's AIM Exchange, expects the Cayman Islands' scheme of arrangement to take effect Wednesday.
That move will enable all existing ordinary shares of the parent holding company, Entertainment One, to be exchanged for an equal amount of common shares of a newly incorporated Canadian company, Entertainment One Canada.
The indie studio and music and video wholesaler already has senior executives headquartered in Toronto.
The Canadian incorporation will also allow shares in Entertainment One Canada to start trading on the London Stock Exchange's main market on Thursday.
E1 earlier secured a listing on the LSE, but required shareholder approval to move the corporate domicile of its holding company, which it secured on June 28.
The company is looking to a listing on the LSE and possibly on the Toronto Stock Exchange (TSE) to raise its profile with investors.
E1 in February 2009 delayed plans to secure a direct listing on the TSE during the height of the financial market meltdown.