Quadrise Fuels International PLC (LON:QFI) said it could wind the business down if it does not access additional funds by the end of next month as it launched a share issue to raise around £2.2mln.
“The board considers that, notwithstanding the positive recent business development initiatives, should access to additional funds not be secured by the end of January 2019, the board would need to consider the commencement of an orderly winding down of the business at that time,” Quadrise said in a statement on Friday.
READ: Quadrise Fuels looks to broaden markets after Saudi setback
The synthetic fuels group said 86.2mln new shares would be issued at 2.5p each, on the basis of one offer share for every 10 existing shares held.
“As at 30 June 2018, the company held cash resources of £2.2mln. These cash balances were confirmed in the company's final results for the year ended 30 June 2018, to be sufficient to enable the continuing development of the business into early 2019 with, at that time, a number of initiatives, including equity funding, under consideration to provide longer-term financing for the business,” the company added.
During its third quarter, Quadrise said it had signed a memorandum of understanding and test programme with a European multinational integrated oil and gas company and entered into a co-marketing and project development agreement with Freepoint.
The company said despite its many challenges its clients believe that there are substantial opportunities in the power generation and marine markets in the near term.
Shares in Quadrise were 27% down at 2.30p in early trade.