Shares in RapidCloud International PLC (LON:RCI) were suspended after the cloud computing services and web solutions provider’s nominated adviser and broker resigned with immediate effect.
For companies listed on the junior market, it is a regulatory requirement to have a nomad and so RapidCloud has one month to find a replacement for WH Ireland otherwise its AIM shares will be cancelled.
To make things even worse, a trading update released alongside the nomad resignation cast more dark clouds over the Southeast Asia-based group.
Investors were told that trading for the year to 31 December 2016 had been “extremely difficult” and that the board now expects to report an operating loss for the period.
On top of that, the update read: “The directors expect that it will be necessary to make meaningful provisions for bad debts expected during the period.”
RapidCloud added that it was evaluating a number of strategic options and it will update the market on these in due course.
Shares closed at 14.75p on Thursday.