IXICO Plc (LON:IXI) is to seek shareholder approval for a reorganisation of the company's share capital.
The data science company that delivers insights in neuroscience, said shareholders with fewer than 100 shares account for more than three-quarters of the shareholders on the register, resulting in significant costs and a considerable administrative burden to the company.
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The plan is for every 100 existing shares to be replaced by one new consolidated share; shareholders with fewer than 100 shares will receive the market value of those shares from the company unless the aggregate value is less than £3, in which case those shareholders will cease to be shareholders – the shares will be sold, with the proceeds donated to Alzheimer's Research UK. IXICO will match all donations to Alzheimer's Research UK.
Once the capital reorganisation has taken place, the consolidated shares will be divided into 100 shares, so the net impact will leave the nominal share value and the quoted share price unchanged while expunging shareholders who hold fewer than 100 shares from the register.
“For shareholders whose shares are held in the nominee accounts of UK stockbrokers, the effect of the capital reorganisation on their individual shareholdings will be administered by the stockbroker or nominee in whose account the relevant shares are held. The effect is expected to be the same as for shareholdings registered in beneficial names; however, it is the responsibility of the stockbroker or nominee to deal with fractions arising within their customer accounts, and not the responsibility of the company,” IXICO explained.
Shares in IXICO were unchanged in early deals.