Applied Graphene Materials said it had not been able to arrange an equity raise due to unfavourable conditions in the small-cap equity markets.
In a statement, the company added that while it was pleased with trading so far in the current financial year, additional funding to extend its cash runway beyond 31 January 2023 will be required.
At the end of that time, Applied Graphene said that its current financial resources will be fully depleted.
Shares fell 42% to 6.4p.