Solgenics Ltd (AIM:SGN), the company formerly known as Ncondezi Energy, has today announced plans to leave AIM and delist.
The company, in a statement, said continuing its listing is unlikely to provide the company with significantly wider or more cost-effective access to capital than the funding options it already has from majority shareholders in the near to mid-term.
It added that given its current market capitalisation of £3.26mln, its most likely source of future funds will be through private capital.
As a result, the company has decided to cut costs and save the administrative burden on maintaining a listing.
Chief executive Hanno Pengilly highlighted that operationally the company is prioritising a strategy to formalise offtake for its first phase 100MW solar PV plant before the end of the second quarter of 2023. Terms have been agreed in principle for a working capital loan from certain directors of the company.
"The company remains committed to progressing the Tete solar project and the decision to delist comes after careful board consideration and evaluation of the advantages and disadvantages of remaining a publicly traded company in the interests of both the company and shareholders,” Pengilly said.
“The company's recent delivery of a positive project feasibility study and approved transmission integration solution, amongst other developments, have put it in a good position to deliver the project and generate value for shareholders. This is reflected by the receipt in April 2023 of multiple expressions of interest from financial investors and Independent Power Producers in funding the project's bankable feasibility study (BFS) work streams.
“The delisting is expected to free up management time and resources to more fully focus on the project and allow a more competitive approach with potential offtakers by limiting available public information to its competitors. All whilst operating under materially lower overheads.”