Mirriad shares crash 80% as company warns of imminent collapse
Shares in Mirriad Advertising PLC (AIM: MIRI, OTCQX: MMDDF) plunged 80% on Thursday after the company issued a stark warning that it may run out of cash and face administration within days unless emergency funding is secured.
The AIM-listed virtual product placement firm disclosed that takeover talks collapsed at the end of April, leaving the board urgently seeking alternative options to keep the business running.
With just £2.7 million in cash remaining at the end of March and monthly expenses approaching £675,000, the company’s financial runway is rapidly shrinking.
Mirriad races to secure funding as administration looms
Mirriad is now urgently pursuing an equity raise or alternative funding options, but acknowledged there is no guarantee that a deal can be secured in time.
Without a financial lifeline, the board warned it may have to initiate administration proceedings as early as next week, which would result in the suspension of the company’s shares from trading.
Mirriad weighs administration as funding options narrow
With discussions around a possible offer now concluded, Mirriad’s directors are urgently exploring alternative options, including an equity placing, to raise funds and keep the company operating as a going concern. However, there is no certainty that such funding will be secured, or on what terms.
Given the immediate financial pressures, the board acknowledged it must consider the interests of creditors. Without a swift capital injection, the directors may have no choice but to begin administration proceedings within the next week. In that event, trading in the company’s shares would be suspended.
