Pelatro PLC (AIM:PTRO) shares screeched 41% lower to 4.7p after the company said it is exploring potential fundraising options due to delays in payments from key customers, including one owing US$0.55mln and two "unwilling" to pay.
Following this customer informing the company that it will not be able to make a July payment deadline, a wider review of outstanding receivables revealed "unusual delays in collection of receivables from four specific customers".
Together there is roughly US$1.1mln owed from these four customers, out of total receivables of US$4.2mln, with two customers, based in Nepal and Myanmar, "unwilling to pay for the services and products received" amounting to a combined US$375,000.
"The company is in active and constructive discussions with the four customers and expects a positive resolution," it said, noting that the delays are "partly due" to the governments of the countries being "yet to provide approval to the customers to make the contractual payments".
While it had cash of US$0.7mln at the end of June and expects to collect circa US$2.6mln from other customers between July and September, Pelatro said it also expects to "require additional external funding in the final quarter of the financial year, dependent on the extent that the outstanding receivables are collected and over what timeframe".