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Bar Operator Nightcap Prepares to go Private

Bar operator Nightcap has said it will delist its shares from the London Stock Exchange, and warned that adjusted earnings would be below market expectations amid a “challenging” trading environment.

In an update, the group said its valuation “does not reflect” its potential, and that it would re-register as a private company.

Nightcap says it has received “irrevocable undertakings” from several shareholders and the directors, representing approximately 76.9% of the company’s issued share capital, to vote in favour of going private.

“We have not taken this decision lightly,” says Gareth Edwards, chair of Nightcap. “However, following an extensive review and deliberation to ascertain the most effective way to maximise shareholder value in the longer term and increase the potential for the long-term success of the company, the board has unanimously concluded that it is in the best interests of the company and our shareholders to cancel our AIM admission and re-register as a private limited company.

“The board believes that Nightcap’s current public market valuation does not reflect the underlying potential of our business or our achievements to date and that this is unlikely to change in the short-to-medium term. Since our last institutional fundraise in May 2021, we have demonstrated several times that we can access funding from non-institutional sources at a premium to our share price at the time.

“We believe that we will be able to continue to execute on our strategy as a private company and therefore we believe that a cancellation of the company’s admission on AIM is in the best interests for shareholders and for the future of our business as a whole.”

Nightcap will put the decision to a shareholder vote on July 17, where investors must approve the proposal. The planned delisting would be on July 29.