Bagir Group Ltd (LON: BAGR) shares slumped around 30% in Friday morning’s deals as it revealed problems with a strategic investment deal with Shandong Ruyi.
In a statement the London listed suit company told investors that it has not yet received US$13.2mln of the previously agreed US$16.5mln and it has agreed an extension to the deadline for the investment.
READ: Friday’s stock market movers report
Shandong Ruyi has requested a new completion date of 18 June, and, in the meantime it requested talks to discuss some changes to the agreed terms.
“Whilst the Board consider Shandong Ruyi's failure to complete the Proposed Investment as a fundamental breach of the share purchase agreement entered into with Shandong Ruyi, the board have agreed to this short extension due to the potential benefits that the strategic partnership might still have on the company and its future prospects with all of Bagir's rights reserved,” Bagir said.
Bagir shares were trading at 1.56p, down 28.8%.