Shares in Trellus Health PLC (AIM:TRLS) dropped 42% on Monday after the company confirmed it will need to raise fresh capital before the end of the year to stay afloat.
The healthcare technology group, which specialises in digital support for chronic condition management, said its current cash reserves of $2.5 million will only last until October, based on contracted revenue alone.
While revenue rose to $114,000 in 2024, up from $19,000 the previous year, the group reported a $7.2 million adjusted EBITDA loss.
It has since signed a pilot deal with Johnson & Johnson and renewed its licensing agreement with Pfizer, but these deals are not enough to fully offset high running costs.
Trellus said it is actively cutting expenses and exploring funding options, including potential asset sales or partnerships.
Management insists the business has strong potential, but admitted the outlook hinges on securing new capital in the coming months.
The stock fell 0.75p to 1.05p.