Biome Technologies, a developer of plastic-alternative materials, has become the latest biotech business seeking to ditch its AIM listing after the stock fell more than 90% in a year.
The company said on Friday that it has proposed the cancellation of shares from trading on AIM, with the ultimate decision subject to approval at the next general meeting on 13 March. Shares sunk 60% on Friday in response to the move.
The Southampton-based business said its AIM listing “is unlikely to provide the company with the optimal platform to drive forward its developmental plans and access further significant capital on terms that are acceptable to shareholders”.
Should the shareholders agree to the resolution, Biome is expected to delist effective from 21 March.
Biome said the decision was down to limited access to capital on London’s alternative public market, where the company has not attracted “significant existing institutional shareholder base and is not widely followed by equity analysts”.
The company also claimed the cost and regulatory burden of maintaining the AIM listing was not worth it.
The move adds to a growing number of small-cap biotechs who have exited the public markets after struggling to raise fresh funds from investors. It follows similar decisions by e-therapeutics and Argent BioPharma.
Biome Technologies went public in 1999 with a share price of 5,420.90p. Biome stock increased by nine times at its peak value of 55,930p in 2005, which has since crashed by over 90% to just 1.45p. The company claimed its “share price is not considered to be a real guide to overall company value”.
In 2023, the company’s revenue grew 12.7% compared with the year before to £7m, however, expenses dragged its operating loss down from £800,000 to £1.2m.
Its trading update for the first six months of 2024, the company revealed revenue had dropped 36% while losses had jumped by 76%.
Biome Technologies is comprised of two divisions, its bioplastics department, which develops green materials, and Stanelco RF Technologies, which designs and builds advanced radio frequency systems.