Shares in Vast Resources PLC (AIM:VAST) fell 22% to 0.08p after providing an update on its finances, saying it has begun "alternative measures" for settling its outstanding debts and to provide additional short-term working capital.
This is because of what it admitted was uncertainty around the plans for a £5.8 million debt to A&T Investments, known as Alpha.
Alpha has given notice that it will start enforcement procedures of the security given to it by a third party if the debt is not repaid in full by this Thursday, 26 September.
The third party, who is a Vast shareholder, has apparently confirmed to the company that "it is not his intention to take any action against the company should Alpha commence any enforcement action against him on 26 September 2024".
If Alpha does launch enforcement action against the third party on Thursday, Vast said "this will have no immediate effect on the company’s business or assets or to any material extent affect its liabilities".
Vast said it is "unlikely" to meet the 26 September deadline repayment to Alpha, as it indicated in a statement in June, but "continues to be assured by the owner of the Swiss investment company referred to in the company’s announcement of 29 April 2024 of his commitment to providing the restructuring finance referenced therein".
However, it added: "in view of the ongoing implementation delay, and the uncertainty therefore that this financing will be forthcoming in due time, the company has commenced alternative measures for settling the outstanding debts and also to provide additional short-term working capital for the group".
The Vast board expressed its confidence that these arrangements will be finalised during the fourth quarter.