The Mode Global Holdings PLC (LON: MODE) share price soared 131.5% after the company’s shares resumed trading on the London Stock Exchange’s AIM market. The fintech firm’s shares had been suspended from trading on 2 May 2023 after delays in publishing its audited financial results.
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The rally higher that started yesterday confirms the significant investor interest in the company and shows that there was pent-up demand for the shares during the suspension period. Investors flocked to the stock once it resumed trading on the LSE.
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Interestingly, the fintech company filed its full-year results for the 12 months ended December 31, 2023, on 4th July 2023. Still, the suspension of its shares was not immediately lifted until yesterday, when it resumed trading on the LSE. The fintech company had to wait almost a month for the suspension to be lifted.
The company has published its full-year results for the past year, so investor attention should shift to the current year and the past two quarters. There will be pressure on Mode Global to file its Q1, Q2 and H1 reports on time to avoid another suspension of its shares.
According to the full-year results, Mode lost £6.9 million ($8.9 million), improving from the £9.2 million loss recorded in 2021. On the other hand, the company’s revenues fell to £1.1 million from £1.3 million in the previous year.
Mode’s board indicated in the full-year results that the company was in dire financial straits and was at risk of ceasing to operate as a going concern if it could not raise additional funding. The company noted that convertible notes worth £1.6 million had expired on 28 June 2023, and it could not repay the notes in full.
The fintech company is currently in discussions with the convertible loan holders to extend the term of the loan notes but had yet to reach an agreement with them by the time of publishing its financial results. The company has not announced a fundraising event to raise cash for its operations.
*This is not investment advice.
Mode share price.
The Mode share price soared 131.54% to trade at $3.01, from its Monday closing price of 1.30p.
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