DeepMatter (LON: DMTR) shares plunged more than 60% on Thursday after the company said it plans to delist its shares from the AIM following discussions with major shareholders and potential institutional investors regarding securing working capital.
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The digital chemistry data and software firm said following the discussions, it has concluded that a delisting and re-registration as a private limited company will provide increased opportunities to raise additional capital. The move is supported by the company’s major shareholders.
“The company anticipates it will seek to raise c.£1m from its major shareholders ahead of the Delisting, following which a more substantial capital raise would be pursued as a private limited company in 2023. This capital raise is being undertaken in order to fund the long term growth ambitions of the company,” DeepMatter said in its statement.
The company reiterated its guidance for the financial year, saying it continues to expect revenue to be no less than £1.5 million, with its cash and short-term receivables at £0.7 million.
Despite already falling significantly since its 2019 highs of over 4p per share, the stock plummeted more than 60% in Thursday’s session. At the time of writing, it is down 52.5% at 0.057p per share.