Polarean shares plunge as board launches strategic review

(Sharecast News) - Polarean Imaging shares were plunging on Wednesday, after its board said it had launched a strategic review to evaluate the company's future direction and organisational structure, including the possibility of cancelling its AIM listing as it looked to improve shareholder value and access to capital. The medical technology company, which specialises in functional lung imaging using hyperpolarised xenon MRI, said the review came amid a "highly challenging" UK market environment for small-cap MedTech firms.

Its board cited persistent undervaluation, limited trading liquidity and the ongoing costs of maintaining a public listing as key factors driving the review.

Polarean said shares had frequently traded below their intrinsic value, while market activity remained subdued, making it difficult for investors to execute trades efficiently.

At the same time, the company said it needed additional funding to support the development and commercialisation of its imaging technology.

As part of the review, the board said it was assessing all options to enhance long-term shareholder value, including further cost reductions and tighter financial discipline.

Among the potential outcomes was the cancellation of the company's shares from trading on AIM and re-registration as a private company.

The board said that, under certain conditions, moving to a private structure "could reduce operational expenses, provide greater strategic flexibility, and broaden access to capital on more favourable terms".

No decision had been made, and any cancellation would require approval from at least 75% of shareholder votes at a general meeting.

Polarean said it remained committed to advancing its mission to "revolutionise pulmonary medicine through Xenon MRI", adding that it would continue to pursue commercial growth while the review is underway.

The company said it would make a further announcement if it decided to proceed with any specific course of action.

At 1309 BST, shares in Polarean Imaging were down 50.28% at 0.2p.

Reporting by Josh White for Sharecast.com.