Good morning!GAME Digital (LON:GMD)Share price: 23.8p (-5%)No. of shares: 173 millionMarket cap: £41 millionProposed admission to trading on AIMA couple of readers have asked me about £GMD’s proposed move to AIM from the Main Market. This was announced yesterday, prompting a 5% fall in the share price.The shares are down by another 5% today, hinting at a delayed reaction to the news from some shareholders.Let’s consider the pros and cons.Pros:Saving costs. Comments by BDO in 2015 (PDF) suggested that an AIM listing was £150k/year cheaper than the main market. For a company with a market cap of £40 million, it is sensible to make that kind of saving. In general, companies of that size will find that AIM is more appropriate for them.Saving time. On top of the external costs, there are also internal costs to satisfy the more complex corporate governance requirements of a main-market listing. Life will be simpler and easier for Game on AIM.Cons:Weaker governance. Some current or prospective shareholders might be unable or unwilling to hold a company listed on AIM, due to the weaker corporate governance requirements. This is hardly going…
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