LONDON - RegTech Open Project plc (LSE: RTOP), a company specializing in regulatory compliance automation, announced its intention to delist its shares from the London Stock Exchange (LON:LSEG) (LSE) and transition to a private limited company. This move is set to take place around December 31, 2024, with the last day of trading on the LSE anticipated to be around December 30, 2024.
The decision by the company's Board of Directors comes after a thorough evaluation of the pros and cons associated with its current public listing. The Board cited several factors influencing this move, including the current challenging market conditions, the significant management time and costs related to maintaining the listing, and the recent resignation of all executive staff in London. Additionally, the company is under a current suspension of its listing.
As part of this transition, a plan has been put into place which includes appointing a new CEO, raising additional capital in alignment with a new business plan, and providing an exit opportunity for shareholders who may not wish to remain with the company post-delisting. However, there are no guarantees regarding the specifics of these plans, such as the timing and identity of the new CEO, the nature of the additional capital to be raised, and the details of the shareholder exit opportunity.
In conjunction with these changes, RegTech Open Project has been granted an extension by Companies House for the filing of its year-end accounts, now due by December 31, 2024. The company continues to rely on funding from The AvantGarde Group S.p.A. and RegTech Open Project S.r.l., both of which are ultimately beneficially owned by Mr. Zamboni, who has assured the company of imminent further funding.
The delisting will terminate the existing English law-governed Relationship Agreement between the company, The AvantGarde Group, and RegTech Italy. Following the delisting, the company will no longer be subject to the regulatory and statutory regime for public companies, which includes various disclosure and shareholder protection measures.
This announcement, based on a press release statement, marks a significant shift in RegTech Open Project's corporate strategy as it prepares to operate outside the public market domain.
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