DeepMatter Group PLC (AIM:DMTR) saw its shares drop by as much as 58% to a record low after the company said it plans to delist from AIM following talks with its major shareholders and potential institutional investors regarding long-term financing.
The digital chemistry data and software company said the delisting and subsequent re-registration as a private limited company would provide greater opportunities to raise additional capital, adding that this view has been supported to date by major shareholders.
“The company anticipates it will seek to raise c.£1mln from its major shareholders ahead of the delisting, following which a more substantial capital raise would be pursued as a private limited company in 2023. This capital raise is being undertaken in order to fund the long-term growth ambitions of the company,” DeepMatter said in a statement.
The company expects revenue for the current financial year to be no less than £1.5mln and the group has cash and short-term receivables of £0.7mln, it said.
DeepMatter shares were down 0.05p, or 42%, at 0.07p in morning trading, after touching a record low of 0.05p earlier in the day.