3D Diagnostic Imaging, parent company of CarieScan, plans to delist from AIM (alternative investment market), the London Stock Exchange's international market for smaller growing companies.
"It has become apparent that in the current market environment ... the board no longer feels able to justify the continued costs associated with the company's admission to AIM," the company explained in a press release.
3D Diagnostic Imaging plans to convene an extraordinary general meeting of the company to propose a resolution to cancel the admission of the company's ordinary shares to trading on AIM. Under AIM rules, cancellation of admission to trading on AIM requires approval by at least 75% of votes cast by shareholders in a general meeting.
3D Diagnostic Imaging has also implemented "a major cost-cutting exercise" that management believes will reduce its monthly overhead base to less than 60,000 pounds ($94,000). As a part of this exercise, CEO Graham Lay, CEO, and Chief Financial Officer Oliver Cooke have agreed to reduce their annual remuneration by 60% and 80%, respectively, while David Snow, the company's nonexecutive chairman, has waived 100% of his annual remuneration. All remaining members of staff have agreed to reduce their annual remuneration by an average of 25%, the company noted.
Earlier this year, 3D Diagnostic Imaging revealed that it was seeking a partner in the dental market after reporting lower-than-expected revenues in the second half of 2011.