In a significant development, London’s Quantum Exponential Group has announced its decision to cease public trading.
- This decision comes after a notable decrease in confidence within the London markets.
- At a recent general meeting, shareholders voted to cancel stock admissions on the AQSE Growth Market.
- Quantum Exponential Group has faced challenges securing new investors despite high interest.
- Economic factors and geopolitical tensions have further impacted market conditions for the firm.
The Quantum Exponential Group, a prominent London-based tech investor, will officially cease trading its shares at the close of the markets on 30 October. This decision follows a vote at the company’s general meeting, which approved the withdrawal of its shares from the AQSE Growth Market. This move highlights the ongoing volatility and lack of confidence currently affecting the London markets.
Earlier in the year, Quantum Exponential indicated that its status as a listed company negatively impacted its ability to attract new investors despite interest described as serious. A severe decline in liquidity and valuations affecting all micro-cap listed companies has exacerbated the situation, further intensified by the current geopolitical climate. The company’s shares have experienced a more than 90% drop from their value at the time of its initial public offering.
Quantum Exponential joins a growing number of British tech firms opting to operate privately to navigate market challenges. Similar decisions have been taken by other companies such as Manchester’s C4X and the fintech entity Tintra, both withdrawing from public markets due to difficulties in fundraising. Quantum Exponential’s strategic focus has been on backing early-stage companies in the burgeoning field of quantum computing.
During its initial public offering, Quantum Exponential raised over £5 million, contributing to an initial valuation of just under £20 million. The company’s investments have included startups like AegiQ, QLM Technology, and Universal Quantum. Recently, Quantum Exponential participated in a $1.1 million funding round for Oxford Quantum Circuits, bridging significant investment phases for the company.
Despite enthusiasm from CEO Steven Metcalfe, who has previously described quantum investment opportunities as ‘very strong’, the company posted pre-tax losses nearing £2 million for the year ending April 2023, a sharp drop from a previous profit of £343,933. Additionally, the value of the company’s assets fell from £5.7 million to £3.8 million over this period.
The delisting of Quantum Exponential underscores the difficulties faced by tech firms in the current economic and geopolitical landscape.
