Biome Technologies has announced its "proposed voluntary cancellation" from trading on AIM, in a move that the firm said would be in the "best interests of the company and its shareholders".

The firm said that it will cancel its shares, valued at five pence each, which will become effective on 21 March, should the cancellation resolution be passed at the general meeting.

The directors said that the firm’s "growth prospects and ability to executive development and scale up strategy will be best accomplished as a private company".

Biome Technologies added that “raising significant equity through public markets is likely to be challenging in the short and medium term” and potentially "may not be at a valuation that is acceptable to shareholders".

In a statement, Biome Technologies stated: "Overall, the directors believe that the time and cost savings associated with ceasing to be a quoted company could be far better utilised for the benefit of the company to capitalise on growth opportunities. Such costs include the direct financial costs associated with maintaining the admission of the ordinary shares which are, in the board's opinion, disproportionately high, compared to the benefits.

"The cancellation will also permit re-allocation of some internal resources, without, in the opinion of the board, any practical diminution in corporate governance and indeed allowing more time for the board and executive management to focus in depth on business-developmental matters."

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