BioTech Biome Technologies has announced its plans to stop its shares from trading on AIM and re-register as a private limited company.
Through its Biome Bioplastics division, the company’s mission is to produce bioplastics that challenge the dominance of oil-based polymers, and ultimately replace them completely.
Building on 20 years of development activity, Biome Bioplastics produces a range of high-performance, plant-based bioplastics that are biodegradable and compostable.
The voluntary cancellation will become effective on Friday 21st March 2025, subject to shareholder approval. A majority of 75% of shareholders will need to agree for the cancellation to be passed.
Directors of the Southampton-based business believe that the cancellation will be in its best interests and have highlighted five key reasons for the proposal.
The company believes that it is likely to be challenging to raise equity through public markets; it would like flexibility to explore without triggering announcement obligations; and it believes its share price is not reflective of the company’s true value.
Its directors also believe that the firm could save time and money if they are not associated with the AIM and also think that the current levels of liquidity in trading of the company’s ordinary shares do not offer investors the opportunity to trade in meaningful volumes.
Since the announcement, Biome Technologies’ share price has fallen off a cliff, from 4.15p late on Thursday night to 1.9p at the time of writing (1.30pm).
Its market cap is currently just shy of £1m.
Directors have also proposed new articles designed to allow more efficient management and administration of the company.
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