Shares in Ocean Harvest Technology Group PLC (AIM:OHT) tumbled 71% on Tuesday after the seaweed-based animal feed group warned it urgently needs fresh funding to stay afloat beyond mid-June.
The company said it has so far failed to secure new investment despite months of talks with potential backers. It is continuing discussions but admitted that no commitments have been made, raising serious questions about its future as a going concern.
Ocean Harvest raised £1.5mn through secured loan notes in September, but that funding has largely been spent. The group posted a €2.1mn loss in the six months to June 2024, and while first-quarter revenues were up 65% year-on-year, it remains loss-making.
As of 30 April, the company had £1.2mn in stock and just £0.4mn in cash, enough to fund operations only until the middle of June. The board said it is reviewing all available funding options and is taking steps to conserve remaining cash.
Ocean Harvest, which makes functional seaweed additives for the global animal feed market, listed on London’s AIM market in 2023.
The stock fell 3.75p to 1.50p.