Shares in UK chipmaker Sondrel (Holdings) PLC tumbled 20% it announced lower revenues and larger profits and confirmed a "transformation plan" that includes cancelling its AIM listing.
Revenue in 2023 came in at £9.4 million, down from £17.3 million, while operating losses grew to £17.3 million from £5.2 million.
Following the March agreement of a £874,600 secured 15% convertible loan note agreement with Rox Equity Partners to fund the company's immediate working capital requirements, it then raised a further £2 million from ROX later in that month via another convertible loan note and a £5.6 million equity subscription that was completed last month.
With ROX now owning 49% of voting shares, Sondrel said has agreed to a transformation plan, which has resulted CEO Graham Curren moving to a non-executive director position and Nigel Vaughan retiring as chairman.
David Mitchard, who was appointed as interim CEO in March and subsequently non-executive chairman in June will also stand down as interim CEO, with John Chubb appointed as CEO designate and chairman.
Chubb is currently serving in the UK Ministry of Defence as senior responsible officer for core delivery at the Defence Equipment & Support arm.
Sondrel said Chubb, is a "highly experienced CEO", having run businesses in IT, communications, energy and construction in the UK and Europe, and "brings a wealth of expertise in business turnaround, cash development, strategic leadership and has an impressive track record of driving growth".
The company will delist from AIM, as it had indicated in May, as the board and Rox have "reached the conclusion in early discussions that the costs and complexities of being quoted on AIM do not benefit any stakeholders at this stage of the group's transition".
A proposal will be put to shareholders to cancel the AIM listing, with a trading facility to be made available to shareholders who wish to buy or sell shares on a matched bargain basis, with a vote at a general meeting in August.