(Alliance News) - Oxford Cannabinoid Technologies Holdings PLC on Wednesday said that it has applied to have its shares cancelled from trading on the London Stock Exchange, following an internal strategic review.
Oxford Cannabinoid is a London-based clinical stage biopharmaceutical company focused on the development and commercialisation of cannabinoid medicines. Its shares fell 55% to 0.16 pence each in London on Wednesday afternoon.
The strategic review, the firm explained, focused on ways to attract new investment to advance drug development programmes "in a timely manner". Given "the continued turbulence in the UK public markets", Oxford Cannabinoid's directors unanimously opted for cancellation.
As such, the company has applied to the Financial Conduct Authority and London Stock Exchange Group PLC to effect a cancellation of listing of its ordinary shares on the standard segment of the FCA's official list, and trading on the Main Market for listed securities of the LSE. Cancellation is expected to become effective on June 6.
"The UK capital markets are facing particularly challenging times and many biopharma businesses like ours are re-evaluating whether it is the right home for them. We believe that the market is significantly undervaluing OCT. This has a negative impact on our ability to raise the capital necessary to drive our programmes at a price that the Board believes would be acceptable noting the current market capitalisation," said Chief Executive Officer Clarissa Sowemimo-Coker.
"In turn, these market conditions compromise our ability to deliver on our core mission - bringing help to people living with debilitating conditions. We anticipate that as an unlisted company, a far larger pool of capital may be available to us, and therefore it is right for us to make this change."
By Holly Beveridge, Alliance News reporter
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