TWO City tech firms are braced for crunch votes to determine their futures this week as shareholders decide whether to bump them off London's beleaguered stock exchange.

Redx Pharma and C4X Discovery have scheduled general meetings to vote on proposals for delisting from the London Stock Exchange's junior Aim market and transitioning to private status.

C4X Discovery is seeking investor approval for its delisting on Monday at Panmure Gordon's office in London while Redx Pharma shareholders will gather at the company's Bishopsgate offices on Friday.

Redx Pharma announced its intention to go private two weeks ago, saying liquidity constraints on the Aim market are blunting its valuation. The company also pointed to share price volatility, challenges in accessing financing, and the high costs of maintaining public company status.

Jane Griffiths, chair of Redx, said the decision came following an extensive review, where its board had "unanimously concluded" that the decision was in the best interests of the company and its shareholders.

"Despite completing some of the largest AIM capital raises for biotech companies in recent years, Redx is still liquidity constrained on AIM," she wrote in a notice to the stock market.

The board needs a 75 per cent to vote in favour of the move to succeed.

Similarly, C4X Discovery, headquartered in Manchester, revealed its plans to depart from the London Stock Exchange's AIM market at the end of March. The company blamed its decision on the recent downturn in financial markets, which weighed on its share price and future fundraising prospects.

If approved, the transition will take effect on 26 April.

(c) 2024 City A.M., source Newspaper