Shares in Velocys PLC (AIM:VLS), which is developing sustainable fuels for the aviation industry, saw its shares nosedive 60% after it updated on funding negotiations which included an offer to buy the entire business for a significant discount to the current valuation.
The non-binding all-cash deal came from a consortium led by Lightrock and Carbon Direct Capital and is priced at 0.25 pence per share, valuing the business at approximately £4.1 million.
At the same time, investors were told there were no binding offers to fund the business, which faces an imminent cash crunch.
The stock closed on Friday at 0.69p and was changing hands in early trade for 0.27p.