LoopUp Group PLC (AIM:LOOP, OTC:LUPGF) shares crashed 70% as the cloud telephony provider unveiled plans to go private and cancel its AIM listing.
Re-registering as a private limited company and raising funds once de-listing occurs are also part of the plan.
Echoing comments from other companies that have left London’s stock markets, LoopUp cited the problems of raising money given the relatively early stage of development of its Multinational Cloud Telephony arm even though it sees this as a strong growth business.
Revenue in 2023 overall is forecast at £21.2 million, up 34%, with cloud telephony up 133% at £2.8 million.
Cash at the year-end was £845,000 but LoopUp added it has a £6 million loan from Bank of Ireland (LSE:BKIR) due for repayment in September.
As part of the discussion over the renewal of that facility, the bank wants the completion of a fundraising.
Steve Flavell and Michael Hughes, co-CEOs of LoopUp, added: “In FY23 we saw triple-digit growth in contract bookings, recurring revenue, customers, contracts, and we've experienced absolute zero churn.
"The priority for us now is to ensure we have the right funding to continue this growth and deliver on our potential.
“We have exhaustively explored all options to arrive at today's announcement, with the board unanimously concluding that this proposal to de-list and conduct a private fundraising is in the best interests of the group and of our shareholders as a whole.”