SHARES in a Scottish digital chemistry data and software company dropped sharply as it announced plans to quit the stock market.

AIM-listed, Glasgow-based DeepMatter said that it has been in discussions with its major shareholders and potential institutional investors “in relation to securing capital to fund the future working capital requirements of the group”.

It said that after discussions the board concluded the cancellation of trading in its shares and re-registration as a private limited company “will provide greater opportunities to raise additional capital”, adding: “This view has been supported to date by major shareholders.”

It added: “Any delisting would be conditional on shareholder approval and there can be no certainty that proposals for a delisting will be approved. The board intends to continue discussions with key stakeholders on the delisting and a further announcement will be made in due course.”

The company anticipates that it would move to raise £1 million from its major shareholders ahead of a delisting, with a further capital raise as a private limited company in 2023.

DeepMatter expects revenue for the current financial year to be at least £1.5m and said it has cash reserves of £700,000. It follows a plan to delist announced by ready-meal firm Parsley Box last week. Shares in DeepMatter closed down 54.17 per cent, at 0.06p.

Read more:

​From November 21 to November 30 2022 the Herald is running a Black Friday subscription offer which provides full access to our unrivalled coverage of news that matters for just £1. To find out more visit: heraldscotland.com/subscribe