Nanoco Group (LSE:NANO) has announced plans to cancel the listing of its ordinary shares from the London Stock Exchange’s Main Market and re-register as a private limited company, subject to approval from at least 75% of shareholders at a general meeting scheduled for June. Management said the move is expected to generate annual cost savings of approximately £0.7 million, extending the company’s £10.1 million cash runway, supporting its path toward medium-term break-even and allowing greater focus on high-potential development projects.
The board stated that maintaining a public listing has exposed the company to significant regulatory expenses, limited trading liquidity and elevated share price volatility. Nanoco also argued that UK equity markets continue to undervalue smaller early-stage technology businesses, particularly those with concentrated customer exposure. As a privately held company, management believes Nanoco will gain greater strategic flexibility, including increased freedom to explore potential future sale opportunities. However, shareholders will no longer have access to a formal public trading market and will instead rely on a matched bargain facility to facilitate limited off-market share transactions.
The company’s outlook remains constrained by weak financial fundamentals, including ongoing losses, weak operating cash flow and negative shareholder equity. Technical indicators offer some support, with positive MACD momentum and the share price trading above key short-term moving averages, while valuation appears superficially inexpensive on a price-to-earnings basis. Nevertheless, these factors remain secondary to the company’s balance sheet and profitability challenges.
More about Nanoco Group plc
Nanoco Group plc (LSE:NANO) is a UK-based nanomaterials technology company specialising in cadmium-free quantum dots and related nanotechnology materials used in display, imaging and sensing applications. The company’s business model is centred on intellectual property development, licensing agreements and joint development partnerships with major Asian electronics and chemical companies, primarily at the pre-commercialisation stage.