4Global shares tumble on proposed exit from London's junior market

(Alliance News) - 4Global PLC on Wednesday said it is proposing the cancellation of its shares on AIM, with disproportionate costs, low liquidity and capital raising challenges all influencing its decision to delist.

The London-based data, services and software company specialising in major sporting events said it intends to seek shareholder approval for the cancellation of its AIM shares, with it seeking to delist and register as a private limited company.

4Global explained that it has been assessing funding options, but "attempts to raise sufficient additional equity capital have not been realised", so it is "exploring its strategic options to explore the optimum route to raising growth capital from other available sources".

Shares in 4Global fell 44% to 12.34 pence on Wednesday morning in London.

4Global noted the low liquidity of its shares in a "volatile trading environment", and said it is planning a matched bargain facility with JP Jenkins if the delisting proceeds.

This would help to facilitate investors trading in its ordinary shares on a matched bargain basis after the cancellation.

Shareholders will vote on the share cancellation at a general meeting on June 25.

The regulatory burden and associated costs were also cited by 4Global when exploring the rationale behind the proposal. It noted the "considerable cost" of around GBP500,000 per year tied to maintaining the admissions of its shares on AIM, adding that it is "disproportionately high, compared with the benefits".

In addition, 4Global reaffirmed its prior statements that "trading has been volatile with macro economic factors affecting the timing of contracts".

For the year ended March 31, it expects to report revenue of GBP4.5million and adjusted earnings before interest, tax, depreciation and amortisation of GBP500,000, down from GBP6.4 million and GBP1.6 million respectively.

It said the current market has had a negative impact on contract timings, although "strong demand" continues in Europe and North America.

By Christopher Ward, Alliance News reporter

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