Nanoco Group has announced plans to delist from the Main Market of the London Stock Exchange, with the board arguing that life as a private company will give it the flexibility and cost savings it needs to push towards commercialising its quantum dot technology.
The group will add to a growing list of firms opting to leave London’s markets and pursue their growth strategies as a private entity.
The decision follows the company’s move in January to abandon its search for a buyer for the trading business. Since then, the board has been weighing how best to preserve cash while backing the parts of the business it sees as having genuine long-term potential.
Delisting is expected to save around £0.7m a year, extending the group’s cash runway as it targets break-even in the medium term.
Nanoco held £10.1m in cash as at 19 May, so this is a company choosing, rather than being pressured, into going private.
The board points to persistent undervaluation and thin liquidity for small caps, a problem felt especially keenly by early-stage businesses like Nanoco with pre-commercial technology and heavy reliance on a handful of key customers.
It will be sad to see another innovative company leave London’s public markets, but not surprising.