Technology minnow Netb2b2 (AIM:NEB) is putting the finishing touches to a share consolidation to boost its share price and reduce the number of small shareholders.
The company, which specialises in buying and growing small technology-based businesses, is planning to announce the consolidation in the next two to three months, with the new shares trading on AIM by the end of the summer.
Chairman Keith Young hopes to raise the company’s share price from its current 1.18p level, in an attempt to increase liquidity and investor awareness.
At the same time, Young and finance director Geoffrey Griggs hope to reduce the number of small shareholders.
The company’s share register contains around 2,000 individual shareholders and no known institutional holders, although the board hold around 27% of the total shares in issue.
The news follows increasing speculation that Netb2b2’s ITM Graphics subsidiary is in advanced talks with a major business-to-consumer publishing house to outsource a proportion of the company’s pre-press work.
The work would include preparing advertisements in publications and billing advertising houses for the well-known publisher.
Netb2b2 recently announced half-year results showing a reduced pre-tax loss of £95,000 against £490,000 last time.
Broker Seymour Pierce Ellis is expected to issue a research note on the company in the next few months.
Shares says: The share consolidation will be good news for Netb2b2, and should boost its ability to raise money in future.
It seems to me this company is being starved of news by design..maybe to accomodate the above strategy...I would rather lose my whole investment than sell @ this point...I really am in long term 'Mr Young & co'
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