Webis Holdings plans to go private and delist its shares from London’s AIM market in an effort to reduce costs.
The betting operator will convene a general meeting on 18 December in the Isle of Man to seek shareholder approval for the cancellation from AIM, with 75 per cent of votes required in favour for the resolution to pass.
Webis provides pool wagering and is the operator of WatchandWager Cal Expo, a harness racetrack in California.
“Following an in-depth review, the Board has unanimously agreed that it is in the best interests of the Company and its Shareholders to delist from AIM,” said Ed Comins, managing director of Webis.
“The Company continues to believe WatchandWager has a unique position in the USA as one of the top five licensed operators in our sector and the Board believes that the Cancellation will reduce costs and protect shareholder value as the Group seeks to grow its business in North America and deliver on strategic goals.”
The Cal Expo operation continues to be loss-making and the company expects to report an overall loss of US$1.06 million for the financial year ended 31 May 2024.
The company said that while it continues to believe in the unique position of WatchandWager in the USA, the Board’s previously indicated strategy of seeking potential buyers, or commercial partners, for the business, have not materialised.
“In light of the above, the Board reviewed its current status and future options including the benefits and drawbacks to the Company retaining its admission on AIM. The Board has concluded that the Cancellation is in the best interests of the Company and its Shareholders as a whole,” Webis announced on Friday.
If the cancellation is approved, Webis will consider putting in place a matched bargain facility to assist shareholders to trade the company’s shares.
Shares in Webis Holdings plc. (AIM:WEB) dropped 59.10 per cent on the news to 0.16 pence per share in London early Friday morning.