The bottom has fallen out of Parsley Box
Parsley Box, the Edinburghbased meal delivery firm, has set out a roadmap to delist from the stock market following the recent collapse in its share price.
The firm delivers ready meals that do not need to be stored in a fridge or freezer, direct to the “underserved baby boomer-plus consumer”, broadly defined as those aged 60 and over. It has faced stiff competition from a number of rivals.
New customer revenue reduced as marketing spend was slashed in the first quarter.
Last month, the group revealed that it was considering delisting from London’s Alternative Investment Market (AIM) following a challenging period since last year’s flotation. It said the cancellation of its shares “may provide greater opportunities to raise any additional capital required by the company in the future”.
Parsley Box shareholders have had a testing time since the group’s initial public offering in March 2021, when it floated for 200p a share with a valuation in excess of £80 million. In an update, the firm said it proposed to cancel admission of its ordinary shares to trading on AIM and re-register the business as a private limited company.
A number of reasons have been given for the decision, including market volatility and the “considerable management time, cost and the legal and regulatory burden” associated with maintaining a market presence, said to be approximately £400,000 per annum.
A general meeting will now be held in Edinburgh on December 14 with any share cancellation taking place on December 22. Re-registration as a private company is targeted for December 30.