(Alliance News) - DeepVerge PLC on Monday announced it will be downsizing a number of its business units, and said that it may need to delay the publication of its annual results.
DeepVerge is an environmental and life sciences company that develops and applies artificial intelligence and internet of things technology to instruments for the analysis and identification of bacteria, virus and toxins.
Shares in the firm plunged 14% to 0.45 pence on Monday morning in London.
DeepVerge said that, given its current financial position, it will no longer be supporting the development of its Labskin, Skin Trust Club and Rinocloud businesses.
These units will be downsized from July 1. The downsizing will involve the elimination of around 20 permanent employee and contract positions, the company said.
Business units Modern Water and Glanaco will be unaffected as the company says it retains the capacity to support these units.
In April, DeepVerge said it was operating from a limited working capital position. On Monday, the company said it is continuing to explore a number of financing options to improve its financial position. This includes the raising of equity, debt or trade finance, it said.
DeepVerge said it is also exploring the potential sale of one or more of its businesses.
DeepVerge said that the publication of its annual results for 2022 may be delayed. This is due to the resignation of the group's previous auditor, Jeffreys Henry LLP, as announced late March.
The company said the resignation of the auditor occurred days before its audit was due to start. It has since appointed Haymacintyre LLP as auditor but the company warned that there is "significant risk" there will be insufficient time to complete the audit by June 30.
If DeepVerge fails to meet the deadline, its share will be suspended from trading on July 3 until the annual report is published. The company said that any such delay would be likely limited to a "matter of weeks."
DeepVerge said that its subsidiary, Glenaco Ltd, has won a new contract for the supply of customised environmental cleaning and monitoring equipment to an unnamed customer within the EU.
The subsidiary said the overall revenue will amount to GBP2.3 million and will be recognized across the coming four years.
By Heather Rydings, Alliance News senior economics reporter
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