Mobilityone Limited (AIM:MBO) shares fell 16.4% to 11.5p on Thursday morning after it clarified that conditions for its planned Islamic digital bank in Malaysia remain unmet.
The group said recent media reports overstated progress for its proposed bank in Labuan, a federal territory of Malaysia positioned as an offshore financial centre.
It said some stories had stated that M1 Malaysia, the group's wholly-owned operating subsidiary in the country, has secured a full-fledged Shariah-compliant Islamic digital banking licence from the Labuan Financial Services Authority.
However, it noted that the Labuan FSA had granted only conditional approval for the formation of a subsidiary in Labuan, subject to MBO Bank having sufficient capital reserves, strong corporate governance and other strict operational and prudential requirements in place.
MobilityOne said today that these conditions "remain outstanding", but it is working to meet them.
Earlier this week, Mobilityone shares surged after the company announced that shareholders of its joint venture partner Technology & Telecommunication Acquisition Corporation (TETE) had approved a proposed merger between TETE and Super Apps.
The completion of this merger, it said, will trigger cash payments totalling around £10.26 million to M1 Malaysia.