TechFinancials has proposed the cancellation of the admission of its Ordinary Shares to trading on AIM this Wednesday. Instead, the company will remain listed only on the NEX Exchange Growth Market.
“The Company believes the Cancellation from AIM, with NEX becoming its primary listing, is in the best interest of the business. The Company has taken the decision to make substantial adjustments to its operating structure and cost base while seeking to develop its newer blockchain based businesses,” the statement from the company said.
“In addition, the considerable cost and management time associated with maintaining the Company’s admission to trading on AIM are, in the Directors’ opinion, disproportionate to the benefits to the Company.”
AIM is the London Stock Exchange’s international market for smaller growing companies. Because of the reduced size of the company and lower expected revenues, following the closure of its trading platform DragonFinancials earlier this month, the Board believes NEX is a more appropriate market.
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Furthermore, the software company believes that NEX will be more beneficial as it focuses on its new business streams, such as exploring the opportunities it has in blockchain.
At the moment, TechFinancials has only proposed the cancellation of the admission of its Ordinary Shares on AIM. At the upcoming General Meeting on the 10th of January, shareholders will vote on the decision.
In order for the cancellation to come into effect, approval of not less than 75 percent is needed. If the necessary votes are received, the cancellation is expected to take place at 7.00 am on the 20th of January 2020, with the trading of shares to be completed by the 19th.
TechFinancials closes B2B trading platform
Today’s announcement follows on from the firm announcing that it has closed DragonFinancials, its business-to-consumer (B2C) trading platform focused on the Asia Pacific region.
As Finance Magnates reported, DragonFinancials, of which the company owns 51 percent, was closed as it has not been able to withstand the current regulatory environment and has been consistently incurring losses since 2018.