Synairgen PLC (AIM:SNG, OTC:SYGGF), a biotech company developing an experimental inhaled treatment for respiratory infections, says its shares will remain freely tradeable - even after its recent move to go private.
The company, best known for its investigational drug SNG001, updated investors following a vote last week to delist from AIM and become a private limited company.
As part of that process, new rules were introduced to govern how shares can be transferred. These included a so-called “right of first refusal” on large share sales - meaning existing shareholders, particularly the majority owner, would get first dibs before anyone could sell to an outside party.
That restriction would have applied to any shareholder selling more than 1 million shares unless they were transferring them to family members or others connected to them.
However, in a move that will ease concerns among minority shareholders, Synairgen said that its controlling shareholder - TFG Asset Management UK, which owns nearly 87% of the company - has agreed to waive those rights.
That means shareholders are free to sell their stakes without needing TFG’s permission, at least for now.
TFG has agreed not to enforce the rules on restricted transfers until Synairgen next raises funds by issuing new shares, though no date has been set for that.
In the meantime, investors can still trade shares via Asset Match, a private trading platform, which Synairgen has committed to using until at least April 2027. Trading will be in paper form - certificated rather than digital.
Anyone wanting to keep up with the company’s progress as it operates privately can sign up for updates on its website.