Ex-Dragons’ Den investor Sarah Willingham to delist cocktail chain from London’s AIM market
FORMER Dragons’ Den investor Sarah Willingham has told the City: “I’m out.”
She unveiled shock plans to delist cocktail chain Nightcap from London’s AIM market.
Shares in the business — which owns 46 bars including Dirty Martini and The Cocktail Club — halved in value at yesterday’s news.
Nightcap reckons the stock market undervalues it — and “this is unlikely to change in the short-to-medium term”.
Delisting means it will no longer be traded on the London stock exchange and the shares will be in private ownership instead.
Nightcap said it has a better chance of raising cash from private equity firms and other investors to grow the business.
It is the latest company to quit the stock market.
Medical firms Oxford Cannabinoid Technologies and E-Theraputics delisted in April because of poor liquidity and low valuations.
It said the market had undervalued it so much it was able to raise cash several times at a price higher than its shares.
But, despite delisting, it warned profits would be much lower than expected due to the tough environment and higher wages.
The business crashed in value to £4.2million — but co-founder Ms Willingham’s website claimed a £70million valuation.
The move comes a month after it announced plans to raise £3.5million from investors.
Nike ticked off
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Adidas has had success with its Samba line, while running brand firms On and Hoka are doing well.
Nike said sales of its Converse trainers were down 18 per cent.
Tata’s threat
STEEL giant Tata has threatened to shut down its Port Talbot plant early because of industrial action.
Workers at the South Wales site had been due to walk on July 8 in a strike led by Unite.
But Tata said if it goes ahead it will bring forward permanent closure from September to July 7.