This week witnessed the cybersecurity small-cap firm, Brandshield Systems plc, publicizing its delisting from the London Stock Exchange.
This development hardly comes as a surprise, considering the ongoing trend of AIM delistings as we step into the fourth quarter.
What adds a twist to Brandshield’s decision is the simultaneous £2.68 million share subscription involving several investors, notably including the former Tesco chief, Sir Terence Leahy.
Sir Terence, who has held investments in Brandshield for a minimum of 12 months, contributed £403,000 to the subscription, showcasing his significant trust in the company’s management to bolster its financial position in the private domain.
According to Brandshield’s mission statement, “The directors are of the view that delisting will aid in enhancing margins even more and permit the executive to concentrate on operational excellence, devoid of the supplementary legal and regulatory obligations that come with our present listed status.”
Moreover, there was an open offer of £2.2 million at 5.68p each, although it seems improbable that retail investors will show interest. The shares experienced a 28% drop to 2.88p following the announcement of the delisting.
