30th May 2018 10:24
LONDON (Alliance News) - Share plunged in Falcon Media House Ltd on Wednesday as the company said it intends to delist from the Main Market of the London Stock Exchange, which is expected to take place on June 27.
Shares in digital media group dove 52% at 1.30 pence on Wednesday.
The reason for the proposed delisting is the fall in the company's market value since its readmission to trading in March 2017, from GBP13.9 million to around GBP1.5 million, reflecting a 89% drop.
Also, delays in generating revenue due to contracts taking longer to sign than expected led to a funding gap, which Flacon attempted to settle by raising GBP3.4 million through the issue of convertible loan notes in October 2017. However it has become clear that additional liquidity is required.
Delisting is expected to save costs for the company, and build a realistic valuation, as Falcon believes that the market is not well-placed to value early stage companies.