The company said that Brewin Nominees, BDS Nominees and Giltspur Nominees, which together hold 13.4% of the company’s voting rights, have agreed to back the proposed cancellation of the company’s stock exchange listing.
Stilo is buying up the shares from Brewin Nominees, BDS Nominees and Giltspur Nominees at a penny a time and has invited other shareholders to sell their shares to Stilo at the same price.
Stilo said it would purchase up to 14.73mln shares – roughly 14.93% of the company’s share capital, excluding the 13.4% stake held by the nominee companies listed above – from its shareholders.
Shares in Stilo practically halved to 0.75p from last night’s mid-market closing price of 1.45p.
In a separate announcement, the company, which provides software tools and cloud services that help organisations create and process structured web-readable format, revealed it made a loss before tax of £29,000 in the first half of the year, compared to a profit of £42,000 in the first half of last year.
Sales revenues were practically unchanged at £656,000.
The company ended the period with cash of £1.10mln, down from £1.44mln at the end of 2018.
“We are currently expecting trading to continue slowly for the remainder of 2019 and need to take measures to reduce our operating costs wherever possible. Of primary importance is the proposal to delist from AIM and re-register as a private limited company, subject to shareholders’ approval,” said David Ashman, the chairman of Stilo.