Shares in Parsley Box have collapsed after the ready meals provider revealed it was considering delisting from London’s junior stock market following a disastrous year since floating.
The DTC business, which sell ambient meals directly to the over-65 demographic, said the cancellation of its shares on AIM “may provide greater opportunities to raise any additional capital required by the company in the future”.
Parsley Box added it was assessing “various potential sources of capital available” to fund its medium-term growth plans.
“This assessment includes consideration of whether the company’s status as a publicly traded company continues to be in the interests of shareholders as a whole.”
The stock, which is already down more than 85% in 2022, sank almost 60% to 4p a share as the news was announced at the end of trading yesterday. It is down another 25% so far today to 3p.
Parsley Box has experienced a tumultuous time since its IPO in March 2021, when it floated for 200p a share with a valuation of more than £80m.
Since then, it has posted two profit warnings amid faltering growth as it failed to maintain trading boosted by the pandemic and and supply issues hitting stock availability.
In December 2021, shares tanked as the company asked investors for more money to get back on track. Already the worst-performing IPO of 2021, the cash call sent shares down to around 40p.
Any delisting from AIM is conditional on shareholder approval and Parsley Box said a further announcement would be made “in due course”.
The group added that 2022 trading remained in line with guidance and that it has cash reserves in excess of £3.5m.
Previously, Parsley Box has reported improved trading and cut its losses after rebuilding stock levels, overhauling its product range and launching numerous promotions in partnership with The Daily Mail for a range of hampers.
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