Shares in ADVFN PLC (AIM:AFN) collapsed by 50% 6.5p in early trading after the financial data company said it plans to delist from the AIM market and become a private company.
In an announcement on Thursday, the board said it had “carefully considered” the move and believed it was in the best interests of the company and its shareholders. It will now seek formal approval at a forthcoming general meeting.
If shareholders vote in favour, ADVFN’s shares will be removed from trading on London’s junior stock exchange, and the group will re-register as a private limited company. The board has also proposed changes to its Articles of Association to support the transition.
In a separate update, ADVFN published its half-year results. The most notable element of the interims was the company's cash position, which was roughly £3.5 million.
After the share price fall on Thursday, ADVFN is valued at around £500,000 LESS than that cash figure. In other words, its current market capitalisation assigns zero value to the business.