Glasgow's DeepMatter becomes second Scottish business in a week to quit stock market

DeepMatter Group, the Glasgow-based digital chemistry specialist, has become the second Scottish business in less than a week to announce plans to leave the stock market.

The firm said it had been in talks with its major shareholders and potential institutional investors in relation to securing capital to fund its future working capital requirements. Those discussions have concluded that the cancellation of trading in the company’s shares on London’s Alternative Investment Market (Aim) and subsequent re-registration as a private limited company will provide greater opportunities to raise additional capital. Any delisting is subject to shareholder approval.

The group is seeking to raise some £1 million from its major shareholders ahead of the delisting, following which a “more substantial” capital raise would be pursued as a private company in the new year. This capital raise is being undertaken in order to fund the long-term growth ambitions of the business.

In a brief update, DeepMatter said it continued to expect revenue for the current financial year to be no less than £1.5m, while the group has cash reserves of £700,000. The Glasgow firm is behind a cloud-based platform to record and share the results of chemistry experiments. Last month, the firm said it was expecting revenues for the current financial year to have jumped by more than 50 per cent, while it also unveiled a new collaboration it believes could become one of its largest to date.

Glasgow-based DeepMatter Group is behind a cloud-based platform to record and share the results of chemistry experiments.

Last week, Parsley Box, the Edinburgh-based meal delivery firm, set out a roadmap to delist from the stock market following a recent collapse in its share price. The firm delivers ready meals that do not need to be stored in a fridge or freezer, direct to the “underserved baby boomer-plus consumer”, broadly defined as those aged 60 and over. It has faced stiff competition from a number of rivals.

Last month, the group revealed that it was considering delisting from the Alternative Investment Market following a challenging period since last year’s flotation. It said the cancellation of its shares “may provide greater opportunities to raise any additional capital required by the company in the future”.