Shares in Mirriad Advertising PLC (AIM:MIRI, OTCQX:MMDDF) plummeted 78% on Thursday after the company warned it may soon run out of money and could enter administration within days unless fresh funding is secured.
The AIM-quoted virtual product placement specialist revealed that talks over a potential takeover had collapsed at the end of April, leaving the board scrambling for alternatives to keep the business afloat.
With a cash balance of just £2.7 million at the end of March and monthly outgoings nearing £675,000, the runway is narrowing fast.
Mirriad is now urgently exploring an equity raise or other funding options, but admitted there is no certainty that any deal can be done in time.
If no lifeline is found, directors said they may be forced to begin administration proceedings as early as next week, which would see trading in the company’s shares suspended.
The stock collapsed 0.26p to 0.076p.