OTAQ, a maritime tech company, plans to withdraw from the Aquis exchange, citing excessive costs and limited benefits.
- The firm highlights issues of share price volatility, limited flexibility, and restricted investor access as detrimental to its operations.
- OTAQ’s board considers its Aquis listing burdensome and potentially harmful to shareholder interests, prompting the move to delist.
- The company anticipates annual savings of £1.2m by eliminating regulatory expenses associated with the Aquis listing.
- A shareholder vote on the proposed delisting is set for December 10, with potential changes taking effect by month-end.
OTAQ, a Lancaster-based company known for its maritime technology products, is moving towards delisting from the Aquis exchange due to concerns that the drawbacks of staying listed exceed the advantages. The company, which has been part of the exchange since 2018, points to issues such as share price instability, limited operational flexibility, and restricted access to investors as key reasons for this decision.
The board of OTAQ has assessed that the ongoing admission of its Ordinary Shares on the AQSE Growth Market is no longer beneficial. They believe that canceling the listing and re-registering the shares would better serve the company and its shareholders. The decision follows a wider trend seen in the stock market, where several tech firms, including Quantum Exponential and C4X Discovery, have similarly chosen to delist.
A significant factor in OTAQ’s decision is the considerable cost, time, and regulatory demands of maintaining a listing on Aquis. The board describes these burdens as ‘disproportionate’ compared to the limited and inconsistent liquidity of its shares. By delisting, OTAQ expects to save up to £1.2 million annually in regulatory costs.
OTAQ has scheduled a shareholder meeting on December 10 to vote on the delisting proposal. If approved, the company’s shares will be delisted by the end of December. This is set against the backdrop of broader stock market trends, with London’s Alternative Investment Market experiencing a significant number of delistings over the past year.
Despite these challenges, OTAQ continues its work in the maritime sector, supported by European Commission funding. The company recently reported a decrease in operating cash flow, turning from a profit of £5.2 million last year to a loss of £389,000. This decline contributes to the narrative of the difficulties faced by smaller tech firms in the UK public market.
The proposal to delist reflects OTAQ’s strategic move to reduce costs and enhance operational efficiency amidst challenging market conditions.
