Memory Corp eases way out of AIM

Memory Corporation is heading for Europe, planning a listing on the young, still unproven, EASDAQ stock market in Brussels. It is moving from London’s junior exchange, AIM, where it took a thorough drubbing, listing on AIM at 45 pence in 1995, then soaring to a dizzying 553 pence before spiraling downwards to the mid 20s. That said, it raised £6 million recently with a placing and rights issue in April at 20 pence per share. Brussels based EASDAQ is unfamiliar territory for most and it lists only 37 companies, many in the high-tech sector. It’s brief existence has a been chequered one, with many wannabee stars blazing brightly for all of 15 minutes before falling into obscurity. David Savage, chief executive of loss-making Memory Corp said EASDAQ’s focus more accurately reflects Memory’s direction and its international customerbase. Despite numbering the likes of Hitachi and Intel in its clientlist, the Scottish semiconductor company has a turbulent history. Last year the company reported losses of £3.31 million with pre-tax losses standing at £1.2 million. Datrontech owns 49 per cent of Memory and when it embarked on a joint venture with the company to set up DTEC, it was a major boost to the beleaguered manufacturer. The consensus is that Memory has diversified wisely, now focusing on licensing intellectual property rather than manufacturing for the semiconductor marketplace. Memory Corp bought Memory Plus and a Hong Kong sourcing company, both of which have now been drafted into the overall Datrontech fold. The current upturn in the DRAM market and the fact that Memory and DTEC can draw on the overall Datrontech distribution model has helped both. Memory is 55 per cent owned by institutional investors and 25 percent lies with around 2,000 private shareholders. They will be asked to transfer their holdings into the US dollar-based Global Depositary Receipts that are traded on EASDAQ like ordinary shares. ®