IXICO PLC is planning to reorganize its share capital to reduce small shareholdings and lower the company's administrative costs.
The London-based health technology company said 78.48% of its shareholders hold less than 100 ordinary shares, representing less than 0.07% of its total issued share capital. IXICO, which trades on the AIM market of the London Stock Exchange, will seek shareholders' approval for the reorganization at a general meeting Sept. 21.
IXICO provides technology services to drugmakers to help them manage and analyze clinical trials.
The reorganization will include a consolidation and subdivision of shares, resulting in a more manageable number of shareholders, IXICO said in a Sept. 4 press release. Every 100 existing ordinary shares will be consolidated into 1, and the resulting shares will be subdivided into 100 new ordinary shares. The reorganized shares will have the same 1 pence value as the existing ordinary shares to avoid any misunderstanding resulting from the consolidation.
Any shareholders holding 100 or fewer individual shares will receive the value of the shares unless it falls below £3. Shareholders with shares valued less than £3 will cease to be shareholders of the company, and any proceeds of the sale of these shares will be donated to Alzheimer's Research UK. Distributing the proceeds from the sale of these small holdings would have involved disproportionate costs, IXICO said.
Should shareholders approve the reorganization, IXICO will implement the plan Sept. 21, with new ordinary shares expected to start trading Sept. 24.
Shore Capital is acting as nominated adviser and broker to the company.