12th Aug 2024 10:58
(Alliance News) - Bivictrix Therapeutics PLC on Monday announced its intention to delist from AIM in favour of pursuing funding as a private entity to advance its pipeline.
The Cheshire, England-based developer of cancer therapies previously said pretax loss widened to GBP1.6 million in the first half that ended June 30 from GBP1.4 million the prior year, with the company again reporting no revenue.
Cash and cash equivalents stood at GBP1.7 million, down 11% from GBP1.9 million.
Chief Executive Officer Tiffany Thorn said: "To maintain our competitive advantage within this space, we intend to progress our pipeline and platform expeditiously, and after extensive review, the board has concluded that this will be best achieved by the company delisting from AIM and re-registering as a private company."
Bivictrix Therapeutics shares fell 38% to 8.00 pence each in London on Monday morning.
Management believes the company's market capitalisation is not reflective of its progress and prospects with the review concluding that the public market offers inadequate liquidity to not support a sufficient fundraise to progress its pipeline.
Furthermore, regulatory costs and management time burdens associated with trading on AIM have been cited as additional reasons that outweigh the benefits of a public listing.
"As a private company, Bivictrix will have access to a greater pool of investors who are more likely to support clinical development, allowing more rapid development across its portfolio," Bivictrix said.
If the resolution is passed at the company's general meeting on August 29, it is expected that cancellation will become effective on September 11.
Arrangements are being made with JP Jenkins to provide a matched bargain facility to allow shareholders to trade shares following cancellation.
By Elijah Dale, Alliance News reporter
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