Data services company 9Spokes has announced that it will delist from the Australian Securities Exchange, citing the high costs associated with listing, the illiquidity of its stock and its inability to raise capital on the public equity market.

The company has submitted a formal application to the ASX for removal from the official list. Shareholders will have to approve the move. 

9Spokes, which is headquartered in New Zealand, describes itself as an “open data platform” that integrates data sources on a single platform and helps clients harness data to build apps that support their business.

It has financial services companies among its clients, including Virgin Money UK, Bank of America and NAB subsidiary Bank of New Zealand.

The move to delist follows a strategic review of the loss-making company. It has engaged PrimaryMarkets, a platform for trading private company shares, to provide a share trading facility for its shareholders.

9Spokes said it has been in discussions with its five largest shareholders, which hold 41.6 per cent of the issued capital. These shareholders have confirmed that they will support the delisting.

According to the company’s most recent financial report, over the 12 months to March income of just over A$6 million was down 8.6 per cent on the previous year and expenses of $12.2 million were up 5.4 per cent. 

The company made a loss of $6.2 million and had cash outflow of $5.2 million from operating activities. Cash at the end of March was down to $3 million.