Nanoco Group shares jumped on Thursday after announcing it plans to adjourn Friday’s general meeting, having concluded it is unlikely to secure the backing needed to take the company private.
The board had called the meeting, set for 10.30 a.m. on 19 June, to seek approval for cancelling the ordinary shares’ listing on the Official List and their admission to trading on the London Stock Exchange’s main market.
Pushing that through requires 75% of votes cast, and the directors now accept that the resolutions are unlikely to clear that bar.
Shares were 28% higher at the time of writing, but the future still remains uncertain.
The proposal, first set out on 27 May, was framed as a way to cut operating costs and channel the remaining company resources into its more promising business areas, with the aim of generating greater value for shareholders.
But after talks with shareholders, the directors realised they wouldn’t get the backing required to take the company private and are seeking alternatives.
The board still believes that a delisting would serve investors’ best interests.
Rather than press a vote it expects to lose, the board intends to adjourn the meeting to weigh up other options and keep talking to shareholders.
The company enjoyed a sharp increase in revenue in its half-year ended 31 January and said it had £10m cash as of 30 April. Investors may wonder why the firm would want to take itself private.