Misgivings over liquidity issues have led Nanoco, the Runcorn-based tech company, to postpone its General Meeting tomorrow (June 19) to delist the business from the stock market.
The former Manchester University spin-out formed in 2001, develops materials used in the manufacture of monitors and TV screens and technologies for medical imaging and the early diagnosis of cancer.
On May 27 it revealed its plan to delist from the stock market, claiming it would save the company £700,000.
It highlighted the “highly challenging” public market environment in the UK for small companies, which it said was “characterised by persistent undervaluation and limited liquidity, particularly for companies such as Nanoco with early stage, pre-commercialisation technology and IP, where there is a significant key customer concentration risk.”
It argued such a measure would reduce the company’s operating costs and enable it to carefully invest its remaining resources in existing high potential business areas, generating greater value for shareholders.
And last week the business welcomed backing for its proposed delisting from independent proxy adviser, Glass Lewis.
But today (June 18), it announced tomorrow’s meeting to authorise cancellation of its ordinary shares from the official list has been adjourned following feedback from its shareholders.
In a stock market notice this morning, Nanoco said: “The board have engaged extensively in dialogue with the company’s shareholder base, noting in particular the concerns around the potential lack of liquidity that would result were the company’s shares to be delisted.
“The board continues to believe that a delisting would be in the best interests of all shareholders but recognises that the resolutions are unlikely to meet the required approval threshold of 75% of votes cast by shareholders at the General Meeting.
“It is therefore the board’s intention to propose the adjournment of the General Meeting to explore further options and allow for further constructive engagement and dialogue with shareholders.”
Shares in Nanoco closed trading yesterday at 2.90p per share. Over the course of the past year they have ranged in value from 2p to 15p per share.