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Gloo Networks shares plummet 60% as reverse takeover comes unstuck
Shares in technology and data analytics company Gloo Networks fell over 60% on Wednesday after it announced it is no longer considering a reverse takeover.
As such, the company is no longer considering the issue of additional shares on AIM with respect to the opportunity but the company reports that it is "continuing to review acquisition opportunities".
Gloo Networks had initially stated its intent to make an acquisition in December, citing "the ongoing digital and technological disruption of media and consumer brands" as driving the potential for acquisition opportunities.
The company saw losses widen in the six months leading up to 30 September, as growing costs associated with discussions concerning potential acquisitions took their toll.
Speaking in December, chief executive Rebecca Miskin said: "As we advance discussions with potential targets, our requirements for corporate finance advice and administrative support have increased. Accordingly, it was decided to increase the monthly fees paid to Marwyn Capital LLP to £50,000 with effect from 1 November 2017, while reducing the notice period from 12 months to 6 months."
After the payment of expenses, Gloo's cash balance is expected to be in the range of £12m to £14m at 31 March.
As of 1044 BST, Gloo Networks' shares were down 62.30% at 36.00p.