Fiinu Plc (AIM:BANK) shares plummeted 68% to 2.15p after the 'Plugin Overdraft' company said it has still not re-applied for a banking licence as it cannot raise enough funding.
The company, which reversed into a cash shell last summer, said in April that it had withdrawn the licence application for its Fiinu 2 arm, formerly known as Fiinu Bank, but aimed to re-apply after two to three months once funding had been secured.
But today it said it had not been able to secure funding "due to the continuing challenging market conditions and limited timescale".
As a result, management have decided to make cost reductions at Fiinu 2 and Fiinu Holdings Ltd, which holds the intellectual property for the group, including job cuts and renegotiating agreements with suppliers.
"It is with deep regret that we have had to scale back operations in Fiinu 2 Limited and Fiinu Holdings Limited, following the successful completion of the technology build of the Plugin Overdraft," said chief executive Chris Sweeney.
"The current general capital, and market specific conditions, are increasingly challenging for a business at Fiinu's current stage of development."