(Alliance News) - DeepVerge PLC on Wednesday said it has been in talks with lenders regarding its equity funds as it cautions on a due loan repayment.
DeepVerge shares plummeted 47% to 3.00 pence each in London on Wednesday afternoon.
DeepVerge is a Dublin-based environmental and life science group that develops and applies artificial intelligence technology to analytical instruments for the analysis and identification of bacteria, viruses and toxins.
The firm said there can be no guarantee that it will raise "sufficient equity funds", due to its low share price, as repayments for a loan fall due. It secured a GBP25 million loan in March, of which an initial GBP4 million was drawn. The firm stated that monthly repayments begin on Sunday, with an initial GBP500,000 due.
DeepVerge added there will be no default on the loan despite any missed payments up to November 14, assuming principal and interest payments are made following a proposed equity raise.
"In parallel with seeking to strengthen the balance sheet, the company is in the process of strengthening and reorganising the board to reflect the recent fast pace of growth and that expected in 2023 and beyond," it added.
By Tom Budszus; tombudszus@alliancenews.com
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