(Alliance News) - Shares in Ashley House tumbled on Thursday as it warned it may not be able to continue to trade if it does not find funding.
The stock was trading 36% lower at 1.50 pence each in London on Thursday afternoon.
The housing firm said it still in pursuit of the cash required "both to meet its ongoing working capital commitments and to support its affordable housing strategy".
Ashley House added: "Although progress is being made, if ultimately unsuccessful or not achieved in timely fashion and in the absence of other sources of funding, the company will not be able to continue to trade as it would be unlikely to be able to honour its obligations to creditors."
The company added the need for funding would not "quite so urgent" if it received payments totalling GBP1 million from two of its own creditors.
"The company is pursuing legal remedies in an attempt to recover these debts," Ashley House added.
On its affordable housing strategy, Ashley House said progress is being made.
The company explained: "Three memoranda of understanding / framework agreements have been signed with major institutional buyers who have a significant appetite for the developments. A non-contracted pipeline is being established consisting of nine schemes, four of which already have outline or full planning approval, which would provide a total of around nine hundred affordable homes."
Ashley House added it is to withdraw its listing on the NEX Exchange Growth Market. The withdrawal will take effect on March 26.
By Eric Cunha; ericcunha@alliancenews.com
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