Directa Plus PLC (AIM:DCTA, OTC:DTPKF) shares fell 17.5% to 7.01p after the graphene products company warned it could be placed into administration if it fails to secure fresh funding within weeks.
The AIM-listed group said it was in advanced discussions with an unnamed institutional investor for a funding facility of up to £2.5 million to extend its cash runway, but cautioned there was "no certainty any funding transaction will be concluded".
The company had been in separate talks with US investment firm Nant Capital over a non-dilutive loan but said those discussions had broken down without agreement.
As revealed in January, Directa closed 2025 with gross cash of €1.5 million, down from €5 million a year earlier, giving it an effective runway only into early May.
The company said that if no additional funding is secured, "it is highly likely that this will result in the company and the group not being a going concern" and that directors would have to consider placing it into administration.
The proposed facility would require shareholder approval to proceed.
The board said it was also pursuing the sale of non-strategic land held by its Romanian environmental remediation subsidiary Setcar, estimated to be worth at least €0.5 million, and evaluating broader options for the business, including a potential disposal of Setcar itself.