DeepMatter Group has announced its intention to de-list from the Alternative Investment Market (AIM) of the London Stock Exchange and revert to private ownership.
The Glasgow-based chemistry data and software business stated that it has been in discussions with major shareholders and potential institutional investors in relation to securing capital to fund future working capital requirements.
Following these discussions, the board of directors concluded that the cancellation of trading in ordinary shares on AIM and subsequent re-registration as a private limited company "will provide greater opportunities to raise additional capital".
The stock exchange update noted that any de-listing would be conditional on shareholder approval, with the board seeking to continue discussions with key stakeholders. A further announcement will be made in due course.
DeepMatter anticipates it will seek to raise circa £1m from major shareholders ahead of the de-listing, following which a more substantial capital raise would be pursued as a private limited company in 2023.
The group continues to expect revenue for the current financial year to be no less than £1.5m and it has cash and short term receivables of £700,000.
The announcement follows a similar proposed move by Edinburgh-based ready meal company Parsley Box last week.
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