Omega Diagnostics has responded to speculation by confirming that it is in discussions with "certain investors and shareholders" regarding a potential equity fundraising.
A stock exchange statement explained: "Market conditions remain challenging and accordingly any issue of equity would be at a discount to the current share price - any fundraise would include an open offer to accommodate retail investors."
Noting an update earlier in January, the medical diagnostics company reiterated that it has "significant cash resources", so there is "no immediate need to raise additional capital" and it may choose not to proceed with a fundraising until conditions are more favourable.
Omega has cash balances in excess of £2.5m and an undrawn overdraft facility of £2m.
That announcement was focused on chief executive Colin King notifying the board that he was stepping down from his position with immediate effect.
Jag Grewal was promoted to the top job, having been a board member since June 2011 and previously occupying the managing director for the company's health and nutrition division.
Non-executive director Bill Rhodes is also set to step down at the end of February, with the company now looking for suitable replacements.
Today's news sent shares in the Alva-headquartered group down around 27% on early trading.
Its shares have lost more than 80% of their value during the last 10 months, after a lucrative contract to produce rapid Covid-19 tests for the UK’s Department of Health and Social Care unravelled.
Last June, the business reported a loss after tax of £2.2m, with its revenue decreasing by 29% to £3.16m during the first half of 2021.
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