The AIM market has continued to shrink, with Redx Pharma being the latest company to pull away from the London Stock Exchange’s scale-up public market.
In a statement today, the Cheshire-based drug developer said it would be seeking to becoming a private company, citing liquidity constraints from the AIM market as holding back its valuation.
In addition to liquidity, Redx pointed to share price volatility, access to financing and the high costs and regulatory burdens of maintaining a public company.
Over the last five years, the company has delivered six molecules and that are in clinic and established four major partnering deals.
Redx is still liquidity constrained on AIM
Jane Griffiths, Chair
Shareholders will vote on the decision on 19 April, requiring 75 per cent to vote in favour of the move, it confirmed in a statement to markets this morning.
In February, it was rumoured that the company was in the process of listing in the US, which it denied, adding that it was not in the process of listing in any other jurisdiction.
In May 2023, a planned $425m (£338.9m) merger between Redx and a US counterpart was called off.
Jane Griffiths, chair of Redx, said the decision came following an extensive review, where its board had “unanimously concluded” that the decision was in the best interests of the company and its shareholders.
She added: “Despite completing some of the largest AIM capital raises for biotech companies in recent years, Redx is still liquidity constrained on AIM. As a result, we believe our current market valuation is not reflective of our track record or future potential and is not conducive to raising the level of capital required for our growing clinical portfolio.
“The board believes that as a private company we can access a broader universe of specialty investors and, accordingly, a larger quantum of future funding required to execute our strategy and maximise our value in the interests of all our shareholders.
“Although we are delisting from AIM, we continue to believe that the UK is an excellent hub for scientific discovery and drug development and remain committed to being part of the UK life sciences community retaining our facility based at Alderley Park.”