Polarean Imaging PLC (AIM:POLX, OTC:PLLWF) has set out plans to leave London’s junior market next month and convert itself into a private company, saying the shift could cut costs and make it easier to secure the funding it needs to keep its lung-imaging technology on track.
The company, which develops medical scanners that use hyperpolarised xenon gas to capture detailed images of lung function, said shareholders will vote on the proposal at a general meeting on 15 December.
If approved, trading in its shares on AIM would end on 22 December, with the cancellation taking effect at 7:00 am the following day.
Polarean’s cash is expected to last until the second quarter of 2026. The board said it needs to raise about $20 million to carry the business through to profitability, and that potential backers have indicated they generally prefer to invest in private companies rather than those listed on the public markets.
In a statement, the board argued that moving off AIM could reduce the burden of listing fees and compliance demands, opening the way for more “strategic flexibility”.
Public markets, it said, were not reflecting the value of the business, and any attempt to raise capital at current levels risked heavy dilution for existing holders.
The directors also pointed to the wider backdrop for smaller medical technology firms in London, where low valuations and thin trading volumes have made fund-raising harder.
Shares that do not change hands often can become more volatile and difficult to sell, limiting the appeal for new investors.
A circular posted to shareholders today sets out the reasoning behind the move and explains the implications, including changes to shareholder protections.
The Takeover Code, the UK rulebook governing mergers and acquisitions, would continue to apply for two years after Polarean leaves the market, after which those protections will fall away.
If shareholders vote through the plan, the company expects to establish a secondary trading facility for its stock by 23 December, allowing transactions to continue on a more limited basis. Re-registration as a private company is expected by 12 January.
The general meeting will take place at Polarean’s office in Durham, North Carolina.