Shares of DG Innovate (LSE: DGI) plummeted over 70% Tuesday after the company announced plans to delist from the London Stock Exchange, citing difficulties in raising funds and regulatory constraints.
The advanced research firm, which focuses on sustainable mobility and energy storage, said it plans to complete its delisting by 31 January 2025.
The company stated that it believes there is a lack of investor demand for early-stage businesses like DG Innovate within the UK's traditional institutional investor base.
Despite operational progress, including partnerships with EVage and Cummins and advances in prototype testing, the board deemed the costs and administrative burdens of remaining listed disproportionate to the benefits.
DG Innovate stated that delisting would simplify operations, reduce costs, and open doors for significant funding from investors hesitant to support a publicly listed entity.
“Furthermore, current discussions with potential investors who could substantially invest in DGI were it no longer listed has given the Directors confidence that this provides the best available route to significant funding,” added the company.
Following the delisting, shareholders will retain their stakes but lose access to a formal trading platform and protections under UK listing and market abuse regulations.
The company is exploring a matching platform to provide liquidity for shareholders post-delisting. DG Innovate aims to publish its 2024 annual accounts by April 30.
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