Nanoco Group (LSE:NANO) shares have fallen 37.1% to 4.3p after the company said it intends to cancel its London Stock Exchange listing and re-register as a private company.
The company said the delisting would save about £0.7m a year and, with a cash balance of £10.1m at 19 May, extend its cash runway as it seeks to break even in the medium term.
The company, a UK-based developer and manufacturer of cadmium-free quantum dots and other nanomaterials, argued the UK public market is challenging for small, pre-commercial technology groups with concentrated customer risk and that operating as a private company would cut regulatory burden and speed strategic decisions.
It pointed to recent operational progress, including a new joint development agreement with a second Asian chemical customer, a three-year extension with its first Asian chemical customer, and litigation and settlement proceeds from disputes with LG Electronics and Shoei.
A circular has been sent to shareholders, and a general meeting to vote on the proposals will be held at 10.30 a.m. on 19 June, with approvals needing at least 75% of votes cast. If approved, the company expects the last day of Main Market dealings to be 17 July and cancellation to take effect at 8.00 a.m. on 20 July.
A matched bargain facility provided by JP Jenkins would then start thereafter for a minimum of 12 months.
Nanoco, meanwhile, noted that recent cost cuts, including several director departures, have reduced gross monthly cash operating costs to between £0.3m–£0.4m.
