2nd Dec 2024 15:07
(Alliance News) - RegTech Open Project PLC on Monday said it intends to delist from the London's Main Market, following months of financial difficulties.
The London-based technology company which manages regulatory compliance systems saw its shares suspended from trading back in June. This followed news of a delay in receipt of a USD1.5 million loan from RegTech Italy, which is owned by Alessandro Zamboni.
RegTech said it extensively reviewed the advantages and disadvantages of holding onto its listing before requesting cancellation. Since the company is listed in the equity shares category, it does not require shareholder approval to delist.
The company has formulated a transitional plan to tide it through the exit process. This includes engaging a new chief executive officer, a role for which RegTech said it has already identified a suitable candidate. The company also plans to raise additional capital to find an exit opportunity for shareholders looking to divest and to "explore further opportunities" for the tech firm's future.
RegTech has not confirmed details of the transitional plan but noted that it has been granted an extension to file its year-end accounts.
The company said the delisting was "part of a short term cost reduction and liability management plan". Contributing factors included RegTech's current funding position and performance of the shareholder loan agreement with Zamboni.
RegTech also highlighted the resignation of all of its executive staff in London, challenging market conditions and difficulty implementing its growth strategy in the listed issuer environment.
The company's existing relationship agreement with The AvantGarde Group S.p.A and RegTech Italy will be terminated following the delisting. This agreement was signed in August 2023 and specified that TAG and RegTech Italy "would provide certain undertakings" to RegTech to ensure its business "would at all times be carried on in a manner which is independent of TAG and RegTech Italy and their respective associates".
The company expects the delisting to become effective on or around December 31, with the last date of trading on or around December 30.
RegTech shares were last quoted at 4.50 pence each in London.
By Holly Munks, Alliance News reporter
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