Power electronics developer for electric vehicles DG Innovate (LON: DGI) is cancelling its listing in the transition category of the Main Market because of the difficulty in raising cash since floating on the now-defunct standard list via reverse takeover of Path Investments in April 2022. The share price dived 70.4% to 0.0225p. The original placing price was 0.5p.
DG Innovate did raise £500,000 at 0.08p/share. This will help to support the joint venture with Indian electric vehicle manufacturer EVage Automotive for the production of DG Innovate’s Pareta e-drives and provide working capital until early February 2025. Much more cash will be required, though.
Management says that the constraints of the prospectus rules and the lack of demand for small companies at an early stage of development have made it hard for the company to raise money. This is not expected to change. The costs and administrative burden mean it is not worth being listed.
There are potential new investors, but they do not want DG Innovate to be listed. DG Innovate does not have get shareholder approval for delisting. This will be effective on 31 January 2025.