(Alliance News) - Mirada PLC on Thursday announced plans to cease trading on AIM and return to private ownership, sending shares plummeting 61%.
The Surrey, England-based provider of software for digital television said after a review of the benefits and drawbacks of retaining the AIM listing, the firm concluded the proposals are in the best interests of the company and shareholders as a whole.
Mirada explained the review highlighted the impact of the concentration of shares owned by one major shareholder, the inability of the company to attract material new investment from third party equity investors, the public market share trading and valuation volatility of the company and the increasing costs of maintaining a public quotation.
The proposals require the backing of at least 75% of shareholders, but majority investor Kaptungs, which holds 87% of Mirada stock, is backing the plans.
The expected last day of dealings in Mirada shares is June 16.
Mirada also updated investors on current trading, reporting business levels for the 12 months to March 31 were similar to the year prior.
Revenue for the financial year is expected to be around USD10.7 million, down marginally from USD11.0 million a year before, with adjusted earnings before interest, taxation, depreciation and amortisation expected to be around USD1.5 million compared to USD1.6 million.
Net debt has increased from USD8.59 million to USD9.75 million in the period, and Mirada said it "continues to be reliant on the financial support of Kaptungs."
But the company struck an upbeat note for future prospects.
"With more than 30 content provider integrations, growing demand for Mirada's Android TV product across its end markets and market activity at pre-Covid levels, the group remains well positioned to continue to benefit from the strong current pipeline, especially in the Latin America region."
Shares in Mirada fell 61% to 7.50 pence in London on Thursday.
By Jeremy Cutler, Alliance News reporter
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