2nd Dec 2019 15:23
(Alliance News) - TechFinancials Inc is to leave London's AIM, it said on Monday, following regulatory pressure hindering the progress of a subsidiary.
The company, which develops trading software using blockchain technology, said 51%-owned subsidiary DragonFinancials has been hit by an "increasingly challenging" regulatory environment, leading to losses in 2018 which have continued.
As a result, and with prospects not likely to improve, TechFinancials alongside its partner has decided to close down the business immediately. Further, it is reviewing the feasibility of the rest of its business-to-business division.
"In light of its decision to close DragonFinancials and the decline in revenue in its traditional B2B business, the board has undertaken 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," said TechFinancials.
"Following this review, the TechFinancials board considers that NEX is a more appropriate market given TechFinancials' currently reduced size and its focus on new business streams."
TechFinancials needs support of 75% of shareholders to delist from AIM and a meeting has now been called, though no date was provided.
The main focus going forward for the company will be on blockchain, via its Footies Ltd and Cedex Holdings Ltd subsidiaries.
Shares were 55% lower on Monday afternoon in London at a price of 1.39 pence each.
By George Collard; [email protected]
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