DeepMatter shares plunge as board proposes delisting
DeepMatter Group said in an update on Thursday that it has been in discussions with its major shareholders and potential institutional investors in relation to securing capital to fund its future working capital requirements.
The AIM-traded firm said that following the discussions, its board had decided that the cancellation of trading in its shares on AIM, and its subsequent re-registration as a private limited company, would provide greater opportunities to raise additional capital.
It said that view had been supported to date by major shareholders.
“In reaching this conclusion, the board has considered the interests of the company's shareholders as a whole and, in doing so, has had regard for its wider stakeholders,” the directors said in its statement.
Any delisting would be conditional on shareholder approval, with the company warning that there could be no certainty that proposals for a delisting would be approved.
The board said it would continue discussions with key stakeholders on the delisting, and make a further announcement in due course.
“The company anticipates it will seek to raise £1m from its major shareholders ahead of the delisting, following which a more substantial capital raise would be pursued as a private limited company in 2023.
“This capital raise is being undertaken in order to fund the long term growth ambitions of the company.”
DeepMatter said it still expected revenue for the current financial year to be at least £1.5m, adding that its cash and short-term receivables currently totalled £0.7m.
At 1336 GMT, shares in DeepMatter Group were down 48% at 0.06p.
Reporting by Josh White for Sharecast.com.