This announcement
contains inside information
HeiQ Plc
(the "Company")
Restructuring and Delisting
As detailed in the Company's trading update on 12
September 2024, with the exception of the Life Sciences business
unit, the Company continues to face significant challenges in its
core business units in Textiles, Flooring, and Antimicrobials due
to ongoing curtailed demand. The industry wide consensus is that
market conditions are only expected to recover towards the second
half of 2025 and accordingly, the Company does not expect to see a
significant improvement in performance of these core business units
before then. In response, the Company has initiated a second
restructuring plan aimed at reducing its costs by up to an
additional 20% by the end of 2025. Key elements of this
restructuring include:
· Reducing central organisation
costs
· Relocating and streamlining of
capabilities to hubs in Portugal, USA and Thailand
· Scaling back non-core elements of
the Company's innovation pipeline and a reduction of
associated corporate marketing activities
The Company has reviewed its strategic product
portfolio within its core business units and is considering
selective divestments, providing a commercially attractive offer or
offers can be achieved. Any proceeds from divestments, should they
materialize, would be used to finance HeiQ's three ventures (HeiQ
AeoniQ, HeiQ GrapheneX and HeiQ Xpectra) and to accelerate the
growth of its Life Sciences business unit.
Fundraising to
scale-up Venture Units
· The Company is seeking substantial
financing for its HeiQ AeoniQ venture, which, as reported in its
recent trading update, recently met a key value-creating milestone
by launching to market the world's first AeoniQ plastic-minimized
sneaker with Hugo Boss. As previously announced, the Company
embarked on a process to raise equity financing exclusively for the
HeiQ AeoniQ subsidiary level.
· The Directors believe that the
Company is close to meeting key milestones for its other two
ventures, HeiQ GrapheneX and HeiQ Xpectra, and plans to accelerate
their go-to-market strategies with additional external
financing.
The Directors consider that the historically low
valuation of HeiQ Plc limits the Company's ability to secure
financing at HeiQ Plc level and complicates its efforts to raise
funds for the various venture platforms at a subsidiary level.
Delisting
The Directors have concluded that the administrative,
regulatory and cost burden associated with maintaining the
Company's listing is, in their opinion, disproportionate to the
benefits. In order to implement the restructuring
programme detailed above, as well as to assist in the Company's
financing efforts for its ventures, the Board has therefore
concluded that it is necessary to cancel the listing of the
Company's ordinary shares (the "Shares") on the Official List (equity
shares (transition) category) of the Financial Conduct Authority
("FCA") and to cancel the
admission to trading of the Shares on the Main Market for listed
securities of the London Stock Exchange ("LSE") (the "Delisting"). The Directors believe that
the Delisting would facilitate its restructuring programme, through
a major reduction in annualized costs associated with being a
listed company. Furthermore, the Directors believe that the
Delisting would greatly assist the Company to raise financing in
the private markets for its venture platforms at higher valuations
and enable their growth and value creation for Company's
shareholders.
As a company listed on the equity shares (transition)
category, the Company is not required to obtain the approval of
shareholders for the Delisting but is required under UK Listing
Rule 21.2.17 to give at least 20 business days' notice of the
intended cancellation.
Accordingly, HeiQ has requested that (i) the FCA
cancel the listing of the Shares on the Official List of the FCA,
and that (ii) the LSE cancels the admission to trading of the
Shares on the Main Market for listed securities of the LSE.
It is anticipated that the Delisting will become effective from
08:00 a.m. (London time) on 19 November 2024. Investors holding
Shares following the Delisting will remain a shareholder of HeiQ
plc and continue to be entitled to exercise all of the rights
attaching to the Shares and their attention is drawn to the
paragraph below entitled "Dealing Arrangements",
The Company intends to publish its Annual Accounts
for the 18-month period ending 30 June 2024 by 31 October 2024, as
required by the UK Listing Rules. The Company's 2024 Annual General
Meeting is expected to take place in November 2024, further details
of which will be announced in due course.
Dealing
Arrangements
Following the Delisting, the Shares will be admitted
to trading on the JP Jenkins securities matching platform with
effect from 20 November 2024.
JP Jenkins provides a securities matching venue for
unlisted or unquoted assets in companies, enabling shareholders and
prospective investors to buy and sell shares on a matched bargain
basis. JP Jenkins is a trading name of InfinitX Limited and
Appointed Representative of Prosper Capital LLP (FRN453007).
Shareholders wishing to trade Shares on the JP
Jenkins platform can place orders through their stockbroker. Trades
will be conducted at a level that JP Jenkins is able to match a
willing seller and a willing buyer. Trades can be conducted, and
limits can be accepted, during normal business hours. Shareholders
or potential investors can place limits via their existing UK
regulated stockbroker.
The indicative pricing for the ordinary Shares (ISIN:
GB00BN2CJ299), as well as the transaction history, will be
available on the JP Jenkins website at
(https://jpjenkins.com/company/HeiQ/).
The provision of the matched bargain facility will be
kept under review by the Board and, in determining whether to
continue to offer a matched bargain facility, the Company shall
consider expected (and communicated) shareholder demand for such a
facility, the composition of the Company's register of members and
the associated costs to the Company and its shareholders.
For further information, please contact:
investors@heiq.com