DeepMatter Group, the Glasgow-based digital chemistry data and software company, is cancelling its shares on the Alternative Investment Market (AIM) and reverting to private ownership.

The company said major shareholders and potential institutional investors have decided that this will provide greater opportunities to raise capital that will secure its working capital requirements. This view has been supported to date by major shareholders.

Any cancellation of shares would be conditional on shareholder approval and there can be no certainty that proposals will be approved.

The board intends to continue discussions with key stakeholders and a further announcement will be made in due course.

The company anticipates it will seek to raise about £1m from its major shareholders ahead of the cancellation, following which a more substantial capital raise would be pursued as a private limited company in 2023. This capital raise is being undertaken in order to fund the long term growth ambitions of the company.  

The group continues to expect revenue for the current financial year to be no less than £1.5m and the group has cash and short term receivables of £0.7m.

DeepMatter follows a similar proposal announced last week by Scottish meals delivery company Parsley Box to cancel its shares on AIM.