Shares of Plant Impact PLC (PIM.LN) fell as much as 60% in early trade Wednesday after the company said it will need at least 7 million pounds ($9.3 million) of funding before next April, and that it is considering a formal sale of the business.
The researcher and developer in crop enhancement technology blamed its funding position on a delay by Bayer's Crop Science division to proceed with their marketing contract announced in July, or meet its commitments under the 2017-18 soyabean growing season purchasing plan.
Continue Reading Below
Plant Impact said Bayer's decision will also hit its earnings for fiscal 2018, with revenue expected to be around GBP6 million. This compares with GBP8.5 million for the year ended July 31.
Plant Impact said that in light of the delay in the Bayer contract, and in order to maximize the value of the company's technology assets, the board has now decided to formally investigate all potential strategic options for the business.
These may include refinancing, a potential sale of selected assets or a sale of the company, it said.
Shares at 0840 GMT were down 13 pence, or 60%, at 8.5 pence. The decline is the company's worst ever one-day percentage fall, according to FactSet data.
Write to Ian Walker at firstname.lastname@example.org; @IanWalk40289749
(END) Dow Jones Newswires
December 13, 2017 04:08 ET (09:08 GMT)