Synairgen PLC (AIM: SNG, OTC: SYGGF) is set to join the growing number of smaller companies exiting London’s AIM market after facing challenges in securing new investments.
The biotech firm, which has been developing an inhaled treatment for respiratory infections, announced plans to delist from AIM and go private after failing to meet its fundraising targets.
Synairgen had aimed to raise £2.9 million to maintain its public listing, alongside an £18 million investment from TFG Asset Management.
After securing only £2.2 million in commitments, Synairgen fell short of its fundraising target, making its exit from AIM all but certain, especially with the backing of its majority shareholder, TFG.
The company argues that going private is the best path forward. By shedding the costs and regulatory demands of being publicly listed, it can focus on its long-term strategy without the short-term pressures of daily share price fluctuations.
For existing investors, trading in Synairgen shares will still be possible through a secondary market platform operated by Asset Match. This electronic service will facilitate share transactions via periodic auctions for at least 12 months after delisting.
Shareholders will vote on the proposal at a general meeting on March 28, with AIM cancellation expected to take effect on April 9. Those retaining shares will receive paper certificates and can continue trading through the new facility.
Synairgen’s decision underscores the growing challenges for smaller companies on AIM, where access to investment and fair valuations has become increasingly difficult.
In 2023, 89 businesses—primarily small-cap firms—left the public markets, many following a similar path, citing limited access to capital, high listing costs, and persistently low valuations.
