Nanoco Group plans to cancel its listing on the London Stock Exchange (LSE) main market and re-register as a private limited company, as the nanotechnology specialist looks to cut costs, extend its cash runway and gain greater strategic flexibility.

The company, which develops cadmium-free quantum dots and advanced nanomaterials for use in displays, imaging and sensing technologies, said the proposed delisting could save around £700,000 annually in listing-related costs and regulatory expenses.

Nanoco said the decision follows a strategic review after the termination of efforts to find a buyer for the business earlier this year. The board believes further operating cost reductions, combined with targeted investment in high-potential commercial opportunities, offer the best route to maximising shareholder value.

Nanoco cited the difficult environment for UK-listed small-cap companies as another major factor behind the decision.

"The UK public market environment for small companies remains highly challenging, characterised by persistent undervaluation and limited liquidity, particularly for companies such as Nanoco with early-stage, pre-commercialisation technology and IP, where there is a significant key customer concentration risk," it said in a filing with the LSE.

The group said these challenges had been amplified by reliance on a small number of major customers, referencing previous contract terminations and customer disruptions that triggered sharp movements in its share price.

The board also argued that operating as a private company would allow faster decision-making and greater flexibility in commercial negotiations, litigation matters and potential future sale discussions without the disclosure obligations associated with a listed company.

The company had cash reserves of £10.1m as of 19 May and said it is not currently facing financial difficulties. However, management believes reducing the cost burden of maintaining a public listing will improve its path towards medium-term break-even and allow resources to be redirected towards commercialisation efforts.

Shareholders will vote on the proposed delisting and re-registration at a general meeting scheduled for 19 June. Approval will require support from at least 75% of votes cast.

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