Shares in Totally PLC (AIM:TLY) fell 30% on Friday after the healthcare services provider warned that its stock could end up worthless.
The sharp drop followed an update on the company’s ongoing strategic review, in which the board confirmed it is considering offers for parts of the business.
Totally said it had received a number of proposals to acquire its subsidiaries and that selling these units was now seen as the only viable option to meet its short-term liabilities. The group had announced the review earlier this month in an effort to stabilise its balance sheet.
Although the board expects to complete one or more sales before additional funding is required, it cautioned that expected proceeds are unlikely to cover all future liabilities.
As a result, directors said “there could be no value in the ordinary shares” and no likely return to shareholders, a stark warning that triggered the steep share price decline.
The stock fell 0.42p to 1p, which still values the business at £2 million.