Shares in Totally PLC (AIM: TLY) tumbled 75% on Friday after the healthcare services firm warned that its stock may ultimately be worthless.
The collapse followed an update on the company’s strategic review, in which the board revealed it is considering offers for various parts of the business. Totally confirmed it had received several proposals to acquire its subsidiaries and said selling these assets is now viewed as the only realistic route to meeting its short-term financial obligations.
The review, launched earlier this month to help stabilise the group’s balance sheet, is expected to result in at least one sale before further funding is needed. However, the board warned that the expected proceeds are unlikely to cover all of the company’s liabilities.
In a stark statement, directors admitted there “could be no value in the ordinary shares,” and that shareholders are unlikely to see any return — a warning that triggered the sharp fall in its share price.
The stock dropped to 0.37p, leaving the company with a market capitalisation of just £730,080.
For more information visit www.totallyplc.com
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Totally plc Simon Stilwell, Chair Prasad Godbole, Chief Executive Officer (Interim)
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020 3866 3330 |
