(Alliance News) - i-nexus Global PLC proposed on Friday to cancel its shares from AIM trading and re-register as a private company.
The London-based cloud software provider said shareholders will vote on the delisting proposal at a general meeting next week Friday, following "a prolonged period of weak share price performance and low liquidity".
i-nexus Global said it already had support for cancellation from shareholders whose collective stake in the company is estimated at 60%. This includes irrevocable undertakings from stakeholders with collective ownership of around 36%.
To delist, it needs the support of 75%.
Cancellation is in shareholders' best interests, the company said, though it remains positive about its prospects.
"The strong growth in monthly recurring revenues in the second half of the year, alongside the progress achieved in prior years, has provided protection to recurring revenue levels following the headwinds experienced during H1", the company reported.
Monthly recurring revenue moderated to GBP246,000 at September 30, down 17% from GBP289,000 year-on-year. Annual revenue for the year to September 30 was GBP3.3 million, down slightly from GBP3.5 million the prior year.
The software firm's pretax loss narrowed to GBP316,671 from GBP595,631 in the half-year to March 31, and half-year revenue was GBP1.7 million, unchanged annually.
If the resolution passes, the last day of trading in i-nexus Global shares will be December 24, with cancellation effective December 27.
The company noted that "the composition of the board is expected to change shortly after cancellation and the re-registration so that it is appropriate for a private company of its size". These changes are yet to be confirmed.
i-nexus Global plans to adopt a three-year growth plan involving new product launches, establishing the company's reputation for best practice and "leveraging multiple routes to market, including increased use of partners".
Chief Executive Officer Richard Cunningham commented: "With limited sales and marketing budget, the company has secured 24 new logos over the past three years, a large percentage of those customers are growing their usage of the i-nexus software and have the potential for further expansion.
"The directors are confident that the strength of the existing product suite, customer base, partner network and this growing market backdrop provides a solid basis on which to build".
i-Nexus Global shares dropped 14% to 1.50 pence each on Friday afternoon in London.
By Holly Munks, Alliance News reporter
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