(Alliance News) - e-Therapeutics PLC on Wednesday announced its intention to cancel its admission to AIM and instead explore the option of listing on the NASDAQ exchange.
The Oxford, England-based computational drug discovery company believes the share price is not reflective of its true value and said it has contemplated such a move for over a year, enticed by the prospect of greater accessibility to capital.
Chief Executive Officer Ali Mortazavi said: "the board was extremely disappointed by the lack of institutional UK interest in our innovative, technology-driven value proposition...This trend has been a consistent theme over the last four years and the company has primarily raised funds through the current two key shareholders."
In addition to this, e-Therapeutics proposed to raise GBP28.9 million to strengthen its balance sheet and compliment the current cash position of GBP18 million.
The sum would be raised from existing shareholders, M&G Investment Management Ltd and Richard Griffiths, by the way of a subscription for 192.7 million shares at a price of 15.00 pence each.
Proceeds would be used to advance the development of its various therapeutic platforms and initiate clinical trials.
The propositions are subject to approval by shareholders at the upcoming annual general meeting on April 29.
e-Therapeutics shares were down 15% to 10.60 pence each in London on Wednesday morning.
By Elijah Dale, Alliance News reporter
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