LONDON - HeiQ Plc, a material innovation company, has announced a comprehensive restructuring plan and its intention to delist its shares from the London Stock Exchange (LSE). The decision follows persistent challenges in its core business units, including Textiles, Flooring, and Antimicrobials, which have been impacted by reduced demand. The company does not anticipate a significant improvement in these sectors until the latter half of 2025.
To mitigate these challenges, HeiQ is implementing a second restructuring plan to reduce costs by up to an additional 20% by the end of 2025. This plan involves cutting central organization expenses, consolidating operations into hubs in Portugal, the USA, and Thailand, and scaling back non-core activities. The company is also exploring the divestment of selected assets within its core business units if favorable terms can be negotiated.
Concurrently, HeiQ is seeking substantial financing for its three ventures—HeiQ AeoniQ, HeiQ GrapheneX, and HeiQ Xpectra—to accelerate their market entry. The company has already achieved a milestone with HeiQ AeoniQ by launching a plastic-minimized sneaker in collaboration with Hugo Boss. The Directors are confident that key milestones for the other ventures are within reach and plan to secure additional funding to support their growth.
The company's Directors have determined that the costs and regulatory demands of maintaining its public listing outweigh the benefits. As a result, they have decided to proceed with delisting from the Official List of the Financial Conduct Authority and the LSE Main Market. The delisting is scheduled to take effect from 08:00 a.m. (London time) on November 19, 2024. HeiQ believes that delisting will enable more efficient restructuring and enhance its ability to raise private capital for its ventures at more favorable valuations.
Post-delisting, HeiQ shares will be traded on the JP Jenkins securities matching platform starting November 20, 2024. JP Jenkins provides a venue for trading shares of unlisted companies, allowing shareholders and prospective investors to conduct transactions on a matched bargain basis.
HeiQ is set to publish its Annual Accounts for the 18-month period ending June 30, 2024, by October 31, 2024, and expects to hold its Annual General Meeting in November 2024. The company's restructuring efforts and financing initiatives are aimed at positioning its ventures for future growth and enhancing shareholder value, as detailed in the company's press release statement.
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