Proactive Investors - Nightcap PLC (LON:NGHT), the premium bar group, is set to cancel its listing on the AIM market and re-register as a private limited company, following management’s review of the company.
Directors said that the decision is in the company's and its shareholders' best interests in a company update on Friday.
Under the review, management considered aspects such as market valuations, liquidity of shares, the ability to raise equity and the cost of maintaining a listing.
After looking at these four key aspects amongst other things, leadership decided to delist, with the cancellation targeted for July 29.
Gareth Edwards, chair at Nightcap said: "The Board believes that Nightcap's current public market valuation does not reflect the underlying potential of our business or our achievements to date and that this is unlikely to change in the short-to-medium term.
“Since our last institutional fundraise in May 2021, we have demonstrated several times that we can access funding from non-institutional sources at a premium to our share price at the time.”
Shareholders must now vote on the move at an upcoming general meeting next month, with 75% of the company having to accept the decision for it to be approved.
Nightcap said in communication before the update it had received support in favour of the decision from shareholders and directors who own around 77% of the business.
It comes a month after rival Revolution Bars rejected its takeover offer, which would have been its sixth acquisition in the last three years.
After walking away from the process, Nightcap said it is "very well placed" to continue executing its consolidation strategy of the late-night sector strategy.