Darlington-based online advertising sales company Infoserve Group wants to leave Aim and as its directors own more than 89% of the company it is likely to happen.
The lack of liquidity has been a problem for the shares. Infoserve released a poor trading statement after the market closed on Friday and the share price subsequently slumped on Monday. The latest announcement has knocked the share price again. On Friday the share price was 2.75p. It has fallen to 1p, which values Infoserve at £590,000.
Management hopes that taking Infoserve off the market will help it raise new finance as well as save £60,000 a year. Coincidentally, £60,000 was the shortfall in revenue and cash in November and December due to adverse weather conditions. Infoserve says that there is little improvement in the confidence levels of its customers.
Infoserve says that it is no longer funding 2i Local, its joint venture with Iliffe News and Media.
Investment in new products, write-offs relating to the joint venture and the costs of cancelling the Aim quotation will require Infoserve to drawdown the remaining £190,000 of its loan facility with non-executive director and 80.3% shareholder David Hood.
Shareholders will vote at a general meeting on 18 February and the proposed cancellation date is 3 March. A third-party trading facility is planned.
The company’s name is being changed to CityVisitor Group.
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