By Anthony O. Goriainoff

Shares in CMO Group plummeted after the company said it would propose to shareholders a delisting of its shares on London's AIM as there isn't a route to source additional funds it needs while it remains on the market.

Shares are down 3.30 pence, or 79.5%, at 0.85 pence.

The online building materials retailer said it would be able to access additional funding more easily post-cancellation, and that this, alongside the reduced cost burden, supports its medium-term growth plans.

"There is no route to source sufficient additional funds the group requires while the company remains on market," it said.

The company said the delisting proposal--subject to approval at a general meeting scheduled for March 17--is intended to reduce costs. CMO will also ask shareholders to approve converting from a public limited company to a private limited company, it said.

The board said it was seeking capital to fund its growth plans and that attempts to raise sufficient additional equity capital haven't been successful.

CMO said it will also review its governance arrangements and that independent nonexecutive Chair Ken Ford proposes to resign upon cancellation.

The retailer said that if the cancellation resolution is passed at the general meeting it expects it to become effective on March 27.

Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com

(END) Dow Jones Newswires

February 27, 2025 05:17 ET (10:17 GMT)

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