BrandShield Systems PLC (AIM:BRSD)’s minority shareholders might be feeling pretty disgruntled today, after the cybersecurity firm announced a double whammy: A tidy £2.68 million share subscription coupled with a sudden delisting of shares on AIM.
There was also a £2.2 million open offer at 5.68p a pop, not that retail investors are likely to bite. Shares tanked 25% following the delisting news, bringing year-to-date losses above 40% and year-on-year losses to somewhere around 65%.
One name among the five subscribers stands out: Former Tesco PLC (LSE:TSCO) boss Sir Terence Leahy, who took a £403,000 stake in the subscription.
Leahy, who has been invested in BrandShield for over 12 months, joined Israeli businessmen Joseph Haykov and Gigi Levi Weiss, and William Currie Investments in the subscription.
Assumedly, they’re hoping their investment pays off in the private sphere, something reflected in today’s statement: “The directors believe that the delisting will assist in improving margins further and allow the executive to focus on operational excellence without the additional legal and regulatory burdens imposed through our current listed status.”
That is fair enough, and certainly nothing unique among the AIM set in a year that has seen delistings by the shedload.
Nonetheless, some retail investors are holding devalued shares in a company that acknowledged it has suffered from a lack of liquidity.
Perhaps their investment will make good in the coming years should management seize growth opportunities outside of the public markets.
Leahy apparently thinks it’s possible, as does BrandShield itself.
Responding to a query by Proactive, a spokesperson said: “The company welcomes all shareholders to remain with the business going forward. This move is about realising value for the business and believing that a move off AIM will better support the business.”