21st Feb 2025 10:41
(Alliance News) - Biome Technologies PLC shares fell more than 60% in London on Friday, after announcing plans to de-list from the AIM market, citing costs and an inability to raise fresh equity.
Biome is a Southampton, England-based bioplastics and radio frequency technology company. Its shares were down 62% to 1.45 pence on Friday morning. It has a market capitalisation of just under GBP750,000.
Biome called a general meeting of shareholders for March 13 to approve the AIM de-listing, but it said shareholders representing 82.5% of all voting rights already have committed to vote in favour. Assuming the exit is approved, Biome said the cancellation will occur on March 21.
Biome said becoming a private company will improve its "ability to execute its development and scale-up strategy".
It explained: "The directors believe that raising significant equity through public markets is likely to be challenging in the short and medium term and potentially may not be at a valuation that is acceptable to shareholders." Biome shares are concentrated among a few individual shareholders, with no significant institutional ownership, it said, making the situation particularly difficult.
Biome also noted the costs of an AIM listing and the management time required to comply with regulatory requirements.
To trade its shares after the AIM cancellation, Biome will put in place a matched bargain facility from JP Jenkins for shareholders.
Tribe Technology PLC and Deltex Medical Group PLC, which were cancelled from AIM on Friday, citing similar concerns, also will be traded on JP Jenkins. Both were admitted on Friday.
By Tom Waite, Alliance News editor
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