Inland Homes said it will have to suspend trading on the London Stock Exchange because it will not be able to meet the March 31 deadline to file its financial results.
In a statement, the company said that new auditors PricewaterhouseCoopers LLP need more time to complete its audit after discovering "certain related party issues of which the Board was not informed at the relevant times.”
Shares of the troubled house builder fell nearly 14% to 6.75p on the news.
The firm said that new non-executive director Matthew Robinson and his team are “exploring options” for completing the audit.
It added it had identified a “practical solution” involving suitable internal management procedures along with an independent review led by Robinson.
Separately, the company said it is contemplating a fundraising of up to £5 million, to be implemented at 10p per share.
Inland has indicative support for around half of this amount, it said, and is progressing discussions.