(Alliance News) - Redx Pharma PLC shares fell on Tuesday, after it said it intends to cancel its shares from trading on AIM in London.
Shares in Redx were down 57% to 8.00 pence each in London on Tuesday around midday. Over the last 12 months, the stock is down 75%.
The clinical-stage biotechnology company said the board unanimously concluded that it is in the best interests of the company to re-register as a private limited company, as it is "still liquidity constrained" on AIM.
Chair Jane Griffith says: "Following an extensive review, the board has unanimously concluded that it is in the best interests of the company and our shareholders to delist from AIM and re-register as a private limited company...Despite completing some of the largest AIM capital raises for biotech companies in recent years, Redx is still liquidity constrained on AIM. As a result, we believe our current market valuation is not reflective of our track record or future potential and is not conducive to raising the level of capital required for our growing clinical portfolio. The board believes that as a private company we can access a broader universe of specialty investors and, accordingly, a larger quantum of future funding required to execute our strategy and maximise our value in the interests of all our shareholders."
A general meeting has been called for April 19 for Redx Pharma shareholders to vote on the cancellation resolution.
By Sophie Rose, Alliance News senior reporter
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Redx Pharma (REDX)