TechFinancials set to delist from London Stock Exchange’s AIM
A sole listing on NEX is poised to result in a reduction in total listing costs, the company explains.
TechFinancials Inc (LON:TECH) is about to delist its shares from AIM, the company has just announced. The move is a result of a cost-cutting drive which the company is undertaking.
TechFinancials explains that its 51% owned B2C subsidiary DragonFinancials has suffered from an increasingly challenging regulatory and business environment which has resulted in it incurring losses which started in 2018 and which have continued throughout H1 2019. The company has decided to close DragonFinancials with immediate effect in order to stem further losses.
TechFinancials is continuing to support customers of its B2B division but it is reviewing the viability of the remaining B2B business and a further decision will be taken in due course.
In light of its decision to close DragonFinancials and the decline in revenues in its traditional B2B business, the TechFinancials’ Board has conducted a review of the benefits of being a quoted company on both the AIM Market of the London Stock Exchange and the NEX Exchange Growth Market. Following this review, the TechFinancials’ Board has determined that NEX is a more appropriate market given TechFinancials’ currently reduced size and its focus on new business streams. A sole listing on NEX would also result in a reduction in total listing costs.
Consequently, the Board has concluded that the cancellation of admission of its Ordinary Shares to trading on AIM is in the best interests of the Company and its Shareholders as a whole.
TechFinancials will seek Shareholders’ approval for the cancellation. The cancellation is set to take place in January 2020. Pursuant to Rule 41 of the AIM Rules for Companies, cancellation is conditional upon the approval of not less than 75% of the votes cast by shareholders (whether in person or by proxy) at the General Meeting.
The Company’s shares will continue to be traded on NEX should Shareholders approve the Cancellation.
Let’s recall that, in August 2018, when TechFinancials’ shares started trading on NEX, along with AIM, the company said:
“The Directors believe that a dual listing on NEX will increase the visibility of the Company in the market; may potentially enhance liquidity for the Company’s shares; and create a solid platform on which the Directors can continue to promote the Company’s growth”.