Oxford BioDynamics PLC (AIM:OBD) shares tumbled over 37% on Monday as the precision medicine test developer warned new funding would be needed by early next year.
Plans were announced for senior staff to receive a quarter of their pay through newly issued shares for the foreseeable future under efforts to cut costs.
A review was also unveiled to look into further funding options, alongside potential sales of company assets or a spin-off of its US wing into a separate business.
“The board acknowledges that access to capital in the UK market is limited and the burn rate of the company has been high in order to get to its current position,” Oxford said.
“In this context, the board and management recognises the need to maximise the company's cash runway,” with additional funds said to be needed by the first quarter of 2025.
Oxford added resources had been reallocated to growing sales of its PSE prostate screening tests, which climbed by 86% to 483 units over the second half of the year.
Shares fell by 37.2% to 2.30p on Monday.