AUS
NZ
UK
CA
USA
IND
_10_04_2024_16_38_50_427275.jpg)
Highlights:
- HeiQ (LSE:HEIQ) announces plans to delist and sell off its core businesses, focusing on its ventures and Life Sciences unit.
- Cost-cutting measures include a 20% reduction in overheads and consolidating operations into key global hubs.
- HeiQ ventures face funding challenges, with delisting scheduled for 19 November 2024.
HeiQ PLC (LSE:HEIQ), the Swiss materials and hygiene technology company, has announced plans to delist from the stock market and sell off its core businesses as it navigates significant challenges in the textiles, flooring, and antimicrobial sectors. The decision follows a prolonged period of weak demand, which is not expected to improve until the second half of 2025. In response, HeiQ will shift its focus to its three ventures—HeiQ AeoniQ, HeiQ GrapheneX, and HeiQ Xpectra—along with its Life Sciences business unit.
The company has also initiated cost-cutting measures aimed at reducing overheads by 20%, as part of an operational restructuring. This includes consolidating its global facilities into strategic hubs in Portugal, the US, and Thailand. Proceeds from planned divestments of the core businesses will be reinvested into its ventures and Life Sciences, supporting future growth and development.
HeiQ has highlighted the urgent need for substantial financing, particularly for its AeoniQ venture. AeoniQ, which recently launched its first plastic-minimised sneaker in collaboration with Hugo Boss, requires further capital to continue advancing its sustainability-focused innovations. Similarly, both GrapheneX and Xpectra are approaching key milestones, but efforts to raise equity have been hindered by the company's low share price, creating financial challenges for the business.
As part of its strategic shift, HeiQ has decided to delist from the London Stock Exchange, with the delisting scheduled for 19 November 2024. The company believes this move will allow it greater flexibility to restructure and reposition itself for long-term growth. The announcement of the delisting and the broader restructuring plan led to a sharp drop in HeiQ’s share price, with shares falling 64% to 2p.
Chief among the company’s priorities is securing the necessary capital to ensure the success of its ventures, particularly as HeiQ seeks to make significant advancements in sustainable and innovative materials. The company remains committed to delivering on its long-term goals, but the immediate focus will be on financial restructuring and stabilizing the business during this challenging period.
