Purplebricks Group PLC (AIM:PURP) shares crashed to all-time low levels after it warned that talks to sell the online estate agency business, being held with "a small number of parties", would be expected to deliver shareholder returns "materially below" the share price.
Given this, the board has looked at carrying out an equity fundraising "but is still considered to lack the necessary support", so is still working out its options with advisers.
Trading for the financial year ended 30 April 2023 was said to have been completed in line with management expectations, though earnings and cash generation for the new year to April 2024 are expected to be impacted as there was no increase in instruction levels in the fourth quarter as had been anticipated.
Purplebricks said its cash generation is unlikely to turn positive in the first half of the new financial year as its payment processor for 'pay now' instructions has exercised its right to withhold a portion of remittances due to the company's financial position.
The cash position was roughly £9.1mln at the end of April.
The shares tanked 59% to 2.25p.