Mast Energy Developments PLC (LSE:MAST) (MED) tumbled 30% as it said partner Proventure has yet to make any payments into their flexible power joint venture.
Proventure is overdue an initial interim payment of £2 million plus the balance of the investment of £3.9 million, MED said, with the long stop date being 30 November 2023.
A formal notice of enforcement has now been issued giving Proventure seven days to remedy the situation, otherwise, MED can terminate the arrangement and claim damages.
MED added it is in advanced discussions with an alternative institutional investor to secure the necessary funding required to advance its development plan while the Pyebridge 9MW flexible power generation asset has been put into care and maintenance.
Pieter Krügel, MED's chief executive, commented: ”Based on the latest assurances from Proventure, the board remains cautiously optimistic that Proventure remains fully committed to and should be able to remedy the position within the remedial timeline to pave the way towards building a fruitful partnership with them.”
Shares fell 0.33p to 0.73p.