Shareholders have voted in favour of ditching the Aim quotation of digital marketing agency Fuse 8 little more than a year after it joined the junior market.
Trading has been significantly worse than expected and the chief executive has left. It will be difficult to raise cash for the company after this early disappointment. The board expects that it will take a long time to rebuild confidence in the business and it does not believe that the cost of the quotation is worth paying while the business is resuscitated.
The share price has slumped to 4.5p - the bid/offer spread is 2p/7p. The fall in the share price started after a profit warning and the initial suggestion that Fuse 8 was going to leave Aim. Leaving at this point ensures that the poor interim figures will not have to be released to the market, although shareholders will, of course, have to be sent the full year accounts.
Fuse8 reversed into former Aim company and Plus-quoted shell Award International and the enlarged group rejoined Aim in July 2010. Award issued 10.215m shares for a notional valuation of £5m – equivalent to just over 49p a share.
The quotation will be cancelled on 12 November.
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