Love Hemp, which has had its shares suspended from trading on the Aquis Stock Exchange (AQSE) since May this year, announced to investors this week that its application to be listed on the Standard Segment of the London Stock Exchange has now also ‘lapsed’.
In an update to investors published earlier this week, Love Hemp said that its ongoing suspension and work to secure a new AQSE advisor has meant it has been ‘unable to make sufficient progress’ in its proposed uplisting to the larger LSE.
The CBD retailer first announced its plans to launch onto the Standard Segment of the LSE in November 2021, and the process was initially expected to take around three months to complete.
On December 3 2021, a month after Love Hemp announced its intention to target an uplisting, the Financial Conduct Authority (FCA) raised the minimum market capitalisation for companies in both the Standard and Premium segments of the main market from £700k to £30m.
While it is understood that Love Hemp submitted its application to list on the LSE before these changes were implemented, its market cap has plummeted from £21m to just over £5m since then.
According to Love Hemp, the FCA has ‘confirmed to the Company that the review of its application has lapsed due to the passage of time.’
“The Board understands this will be disappointing news for shareholders but reaffirms this does not preclude the company progressing any new or dual market listing for the company in the future. In the meantime, the company continues to focus on building its infrastructure, strengthening its controls and driving increased trading performance which must be its current priority.”
Meanwhile the company has announced more changes to its board of directors, welcoming Robert Smyth as its new Chief Financial Officer with ‘immediate effect’, who is credited with ‘leading the floatation of KP Renewables’ onto AIM.
Non-Executive Chairman Graham Mullis said Mr Smyth brings the financial and managerial experience to ‘make a significant impact to the running and planned growth of the business’.
He added: “We understand shareholders may be disappointed with the cessation of the listing process to the Standard Market of the LSE but we would like to reassure shareholders that the Company is developing exciting plans both corporately and operationally which it looks forward to sharing in the future.”