Proton Motor Power Systems Seeks Delisting From London's AIM

Proton Motor Power Systems PLC, a designer and producer of hydrogen fuel cells and hydrogen fuel cell electric hybrid systems, has announced its intention to delist from London's Alternative Investment Market (AIM) and wind down its operations by the end of 2024. The company cited funding challenges and working capital requirements as the primary reasons for this decision.

Shares in Proton Motor Power Systems were down 72% at 0.12 pence each in London on Wednesday afternoon following the announcement. The company had been warning of the risk to its working capital requirements since the end of August 2023 and had been in discussions with a Germany-based potential industrial partner to secure additional funding. However, these discussions have now been terminated, leaving the company with no other viable financing options.

Proton Motor Power Systems had net liabilities of around GBP116 million as of June 30, 2023, which may have also contributed to the decision to wind down the business. The company has stated that there can be no guarantee of a solvent winding up or any returns to shareholders, as the situation is uncertain.

The company's financial performance has also played a significant role in this decision. In 2022, Proton Motor Power Systems reported an operating loss of £10,542k, compared to £9,121k in 2021 (excluding the effect of embedded derivative). Sales in 2022 were £2,088k, representing a -25% annual change from 2021. The company's cash position as of 31 December 2022 was £2,579k, which may not be sufficient to sustain its operations in the long run.

Proton Motor Power Systems' decision to delist from AIM and wind down its operations has several potential implications for its shareholders. Shareholders may experience a significant loss in the value of their investment, as the company's shares are expected to be delisted and the company will cease to exist as a going concern. The share price has already dropped by 72% following the announcement, indicating a potential loss in investment value. Additionally, shareholders may face difficulties in selling their shares once the company is delisted, as there will be no secondary market for trading. This lack of liquidity could make it challenging for shareholders to realize their investment.

Shareholders may also be uncertain about the potential returns they could receive from the winding-down process. The company has stated that there can be no guarantee of a solvent winding up or any returns to shareholders, which may cause concern among shareholders regarding the recovery of their investment.

In conclusion, Proton Motor Power Systems' decision to delist from AIM and wind down its operations is a result of funding challenges, working capital requirements, and financial performance issues. Shareholders may face potential losses in investment value, lack of liquidity, and uncertainty about returns. As the situation unfolds, shareholders should closely monitor the developments and consider their options, such as engaging with the company, seeking legal advice, or filing a claim if they believe the decision was not in their best interests.