Parsley Box quits stock market after value wiped out
Meals delivery firm Parsley Box , chaired by Scottish entrepreneur Chris van der Kuyl, intends to bring an end to its disastrous run on the stock market by cancelling its shares.
The company, which has seen its value almost entirely wiped out since its £84m flotation in March last year, will ask shareholders to back its plan to quit the Alternative Investment Market and re-register as a private limited company.
It announced a review of its options on 25 October and has concluded that shareholders will not provide further support as a publicly-traded company.
The company’s shares, which floated at 200p, were last night worth 1.65p, valuing it at just £1.2m and closed 1.15p (69.70%) higher today at 2.8p, valuing the company at £2.03m.
“As a result of this review, the directors have concluded that the cancellation and re-registration are in the best interests of the company and its shareholders as a whole,” it said in a statement.
The cancellation will depend on 75% of votes cast by shareholders at a general meeting to be held at the offices of Dickson Minto in Edinburgh on 14 December.
Shareholders are able to continue trading in the shares on AIM prior to the cancellation. The board understands that, MoveFresh, a company that Parsley Box CEO Kevin Dorren is a director of and majority shareholder in, intends to purchase up to 29.9% of the shares in the market.
There is no guarantee that any purchases by MoveFresh will take place and there can be no guarantee as to the price of such purchases.
The company has received irrevocable undertakings from each of the directors and their connected parties to vote, or procure votes, in favour of the resolutions representing, in aggregate, 25,971,937 ordinary shares.
Accordingly, the company has received irrevocable undertakings to vote in favour of the resolutions representing approximately 35.8% of the company’s issued share capital as at the date of this announcement.
Following a series of negative updates from the company, investors snubbed an issue of shares earlier this year, with only £140,000 or 12.85% raised of the £1.1m proposed total.
Mr van der Kuyl subscribed for shares worth £1.87m giving him a 19.2% stake, while CEO Kevin Dorren bought shares worth £1.1m for a 15.2% holding.
Together with £5.9m pledged from the placing, the company raised gross proceeds of £6.07m, about £1m short of the target.
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