Small-cap tech investment firm Quantum Exponential says being listed is 'an impediment'

Another blow was dealt to the London stock market today after a small-cap tech investment firm said its status as a public company was “an impediment” to growth and that its board unanimously agreed it should delist.

Quantum Exponential Group, which invests in quantum computing businesses, said it had received several “serious” expressions of interest from investors but that it had been “told repeatedly that the company's status as a publicly traded company has been one of the impediments to completing any investment agreements as these investors generally prefer to invest in private entities.”

The firm has seen its share price sink around 80% since its debut on the Aquis exchange in late 2021, despite an apparent surge in investor interest in quantum computing over the same period, with the technology viewed as transformative to the applications of artificial intelligence.

The London stock market saw just 23 issuers listing in 2023, a 49% decline on the 45 recorded in 2022, making it the quietest year on record since 2010 according to figures from EY.

“Since incorporation there has also been a severe downturn in general liquidity and valuations for all micro-cap listed companies. This has not been helped by the geopolitical situation along with inflation and interest rate rises,” Quantum Exponential said.

“Significant cost savings, both directly and indirectly could also be achieved which in turn would offer the potential for higher returns over time for shareholders if the Company was de-listed.”

A shareholder vote on the delisting plans will be held on 15 March, with the firm set to leave the exchange two weeks later if the plans are approved.