Shares in Surface Transforms (AIM:SCE) fell by 28% after the unexpected resignation of chairman Andrew Kitchingman, who left after just two months in the role.
Ian Cleminson has stepped in as interim chairman as the company, a specialist in carbon-ceramic brakes, grapples with cash constraints and examines "strategic opportunities" to stabilise its finances.
Cleminson said: "While short-term business priorities are focused on operational improvements and tight management of cash, we are reviewing strategic opportunities to bring longer-term financial stability to the company."
The stock fell 0.069p to 0.18p, valuing the business at just £2.25 million.