Sportech proposes switching stocks to London’s AIM
Sportech is currently trading its shares at 20 pence each on the Official List of the Financial Conduct Authority but has proposed applying for admission to the LSE’s AIM.
In order to delist, Sportech would require the approval of at least 75% of its shareholders who vote in person or via proxy at its general meetings. As such, Sportech plans to hold a general meeting on 29 June to discuss the proposal.
“The directors believe that AIM is a market and environment which is more suited to the company’s current size and strategy and AIM will offer greater flexibility with regard to corporate transactions and should therefore enable the company to agree and execute certain transactions more quickly and cost effectively than a company on the official list,” Sportech said.
The proposal comes after Sportech in April announced a loss of £12.8m (€14.9m/$18.1m) in 2020, while revenue was also down 40.6% year-on-year to £20.0m.
During 2020, Sportech sold both its Global Tote business and the Bump 50:50 lottery brand, with chief executive Richard McGuire describing the year as extremely difficult due to the impact of the novel coronavirus (Covid-19) pandemic.
In March, Sportech also announced that chief commercial officer Julian Bewley had stepped down from his role to pursue other opportunities.