LONDON - OTAQ Plc (AQSE:OTAQ), a technology company serving the aquaculture and offshore industries, has announced its intention to cancel the trading of its ordinary shares on the AQSE Growth Market, subject to shareholder approval. This move would also include a re-registration of the company as a private limited entity and the adoption of new articles of association.
The board of OTAQ has thoroughly evaluated the pros and cons of maintaining its public listing and concluded that the drawbacks, such as limited liquidity, share price volatility, and the disproportionate costs and regulatory burden, outweigh the benefits. The company believes that the delisting would be in the best interest of both the company and its shareholders.
A general meeting has been scheduled for December 10, 2024, at The Barracks, White Cross, Lancaster, where shareholders will vote on the proposed cancellation and subsequent re-registration as a private company. For the resolution to pass, it requires the approval of at least 75% of the votes cast by shareholders.
Additionally, OTAQ has amended its Convertible Loan Note Instrument, initially issued on July 12, 2024, with a principal amount of £1.79 million. Notably, more than 75% of the note holders have agreed to waive an event of default that would have been triggered by the delisting, on the condition that the company commits to selling its Sealfence acoustic deterrent system inventory to repay the loan notes. The terms have also been modified to allow up to 75% of the proceeds from the inventory sale to be used for the redemption of the outstanding notes and any accrued interest.
As of today, OTAQ has secured irrevocable undertakings from directors, their connected parties, and certain shareholders, representing approximately 45.8% of the company's issued share capital, to vote in favor of the resolutions.
The company has made the announcement and the corresponding circular available on its website for shareholders' reference. The proposed delisting is part of OTAQ's strategic review of its optimal corporate structure for long-term success, which may include listing on an alternative exchange in the future if it aligns with the company's access to capital and liquidity needs.
This article is based on a press release statement from OTAQ Plc.
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