Glantus Holdings PLC (AIM:GLAN) shares fell 15% after the fintech warned that it would swing to an underlying loss of €2.1mln for the past year and would need to raise money as it has "low amounts of cash".
The AIM-listed company, which specialises in providing accounts payable automation and analytics solutions to large businesses, said it expects to announce a conditional €1.4mln fundraising via a subscription at a price of 9.25p per share, later today.
As well as a low level of cash, €5mln needs to be repaid to lender Beach Point Capital in August, though a conditional commitment to extend the repayment date by 12 months has been given, partly conditional based on the company raising £1.2mln from issuing equity.
Revenues for 2022 are expected to be roughly flat at around €10.8mln with the lack of growth and the swing to losses blamed on a number of factors, including two "material" contracts likely to slip into next year and the relocation of part of its business to Costa Rica.
A restructuring has led to the cutting of 39 jobs, saving more than €3mln on an annualised basis, with a further "significant reduction" in operational infrastructure costs as operations are focused "on technology-led initiatives to drive margins and scale".
The shares fell to 7p on Tuesday morning, down 91% over the past 12 months.