Silver Bullet Data Services Group PLC (AIM:SBDS) shares fell 60% to 10p after the marketing technology company said it plans to delist from AIM.
The company said it would ask shareholders to approve the move at a general meeting on 25 June, arguing that public market conditions no longer reflected the underlying value of the business and were limiting its ability to raise growth capital.
SilverBullet, which listed on AIM in June 2021 at a price of 257p, saw its shares rise to 325p but fall around 97% since.
The board was said to unanimously believe moving into private ownership would better support future funding and profitability, and that they consider the cancellation and subsequent re-registration to be in the best interests of both the company and shareholders as a whole.
The company said it would post a circular on its website and to shareholders explaining the rationale for the cancellation and its implications for investors.
Chief executive Ian James said: "Despite delivering consistent growth and a current EBITDA positive performance, the recent downturn in the financial markets has adversely impacted the company's share price and does not reflect the fundamental value of the company."
He added that the board believed this situation was unlikely to change in the short to medium term and that operating as a private company would enable SilverBullet to achieve a fairer valuation and secure greater funding for expansion.
