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Bivictrix Therapeutics PLC (LSE:BVX) announced on Monday its decision to delist from AIM in order to seek funding as a private company to advance its drug development pipeline.
Financial Performance and Delisting Rationale
The company, based in Cheshire, England, reported a widened pretax loss of £1.6 million for the first half of the fiscal year ending June 30, up from £1.4 million the previous year. Revenue remains nonexistent, and cash reserves decreased by 11% to £1.7 million from £1.9 million.
CEO Statement on Strategic Shift
Tiffany Thorn, Chief Executive Officer, stated that the decision to delist is based on an extensive review by the board. The aim is to expedite the advancement of Bivictrix's pipeline and maintain its competitive edge in the cancer therapy sector. Thorn noted that transitioning to a private entity will better support the company's strategic goals.
Impact on Share Price and Market Perception
Following the announcement, Bivictrix Therapeutics' share price dropped by 38% to 8.00 pence in London on Monday morning. The company’s management believes that the current market capitalization does not reflect its progress and potential. They concluded that the public market does not provide adequate liquidity for necessary fundraising and that regulatory and management costs associated with AIM are not justified.
Benefits of Transitioning to a Private Company
Bivictrix expects that, as a private company, it will have access to a broader range of investors who are more likely to support its clinical development efforts. This shift is anticipated to enable more rapid progress across the company's drug development portfolio.
Next Steps and Shareholder Arrangements
The company will seek shareholder approval for the delisting at a general meeting scheduled for August 29. If the resolution is passed, the delisting will take effect on September 11. To facilitate trading of shares post-cancellation, Bivictrix is arranging a matched bargain facility with JP Jenkins.
