The stock dove 75% after it announced its agreement with Bayer had fallen through.
Companies: Plant Impact
Plant Impact (LON: PIM), a leading provider of chemical crop enhancement products, has announced today the company is for sale after delays in contractual agreements with Bayer have left it in serious financial trouble.
The statement said Bayer "will not be able to meet its commitments" with Plant in their contract to distribute its flagship soybean product in Brazil. Bayer has had to "further accelerate its destocking activities" due to challenges in the Brazilian market.
The unfortunate news sent PIM shares into a nosedive, with 75% of the Group's value wiped off on Wednesday morning trading.
As a result, the Board is "investigating all potential strategic options" including refinancing, selling off assets or selling the Company.
The fallout with Bayer has left a gaping hole in the company's balance sheet:
"Given the reduction in cash flow from the lower revenue expectation for FY18 and to provide a reasonable buffer in FY19, the Group's funding requirement is likely to be around £7 million."
The Board is already in discussions about the sale of the Company, saying:
"It now intends to conduct a formal sale process within an accelerated timetable, with the aim of announcing the outcome of the process very early in 2018."
At the time of writing the stock traded at 5.75p - compare this to yesterday's closing price of 22p and a March '17 price of 54p.