Safestyle tumbles as hopes for capital injection, new financing fade

26th Oct 2023 08:20

(Sharecast News) - Windows and doors retailer Safestyle warned on Thursday that it no longer expects to be in receipt of any form of capital injection or new financing, sending its shares sharply lower.

Safestyle previously announced that it was in a process which may include a capital injection or new financing, a potential sale of shares in its subsidiaries and/or a sale of the business and assets of its subsidiaries.

However, while it no longer expects a capital injection or new financing, the AIM-listed group said its directors were in "active discussions" with a shortlist of interested parties as part of the process. These discussions were said to focus on the sale of some or all of the group's business and assets.

"The company is working with these parties towards concluding these discussions as quickly as possible," said Safestyle. "There can be no guarantee that these negotiations will result in the completion of a proposed sale, and, even if a proposed sale does complete, there can also be no certainty on the timings or level of return, if any, to shareholders."

As of 0900 BST, Safestyle shares had plummeted 50.99% to 0.78p.

Reporting by Iain Gilbert at Sharecast.com