Corre Energy plans to drop its stock market listing from Euronext Dublin, in an effort shore up the troubled finances of the renewable energy storage firm.
Corre “has identified potential funding solutions for the portfolio going forward which is outside the public markets,” it said in a statement. “The board believe that maintaining a listing on Euronext Growth is unlikely to offer the most effective or cost-efficient path to securing this funding.”
Dropping the listing would make it more practical for the company to change its operating model and ease the burden on the firm given its “constrained financial capabilities,” the firm added.
The shares fell 10 per cent in Dublin.
If shareholders approve the move, Corre will delist from the market on March 28th. An extraordinary general meeting to vote on the proposal has been scheduled for March 20th.
Delisting would be the latest move to help shore up the finances of Corre Energy.
In December it raised €4 million from the sale of is 50 per cent stake in a Dutch battery joint venture development set up earlier that year while it continues to seek financing from a big external investor.
Corre had said in September that was seeking to “finalise a form of investment” agreement before the year end, even if the transaction was unlikely to be completed until 2025.
Corre has seen its shares plunge over the past year, resulting in a market value on the company of just €6.98 million, amid concerns over funding, board and management exits and revelations in August about loans to its founding shareholder, Corre Energy Group Holdings, that had been secured against shares in the listed company.
Corre said at the time that it had handed over a 19.3 per cent stake in the Dublin-listed company to Stream Street, a company owned by Northern Irish investor Frank Boyd, to settle a loan that had been backed by shares.
It also disclosed that Corre Energy Group Holdings had pledged a further 15.4 per cent stake in Corre as security for other loans. Sources say that the majority of the loan capital raised by Corre Energy Group Holdings was put back into the business.
Stream Street and other investors that participated in the €5 million emergency financing deal in late September have since moved to secure board seats.
Corre had raised a further €2.58 million through an emergency share sale in July.
Its interim report shows that it was down to only €300,000 in net cash before that share sale.
