There are significant concerns about the ongoing viability of MySQUAR Limited (LON:MYSQ), the Myanmar-focused social media group, though a bail-out deal is also being mooted.
In an update, investors also learned that preliminary probe has discovered that £900,000 of the firm’s funds had found their way into the hands of unnamed former directors and third parties without sign-off from the remuneration committee. The company is considering its options for recovering the money.
READ: MySQUAR suspended due to material uncertainty over cash position
In the meantime, MySQUAR is in cash conservation mode, and a round of redundancies has been made.
The business requires a cash injection to continue trading. Talks with a creditor willing to provide the working capital are underway as is the due diligence process.
However, the latest MySQUAR missive came with a health warning as it said: “There can be no guarantee that funding will be forthcoming”.
“As a consequence, there remains a material uncertainty regarding the company's working capital position and trading in the company's shares will remain suspended pending clarification of the company's financial condition,” shareholders were told.
In a separate announcement, the market was told that SP Angel Corporate Finance has resigned as MySQUAR’s nominated advisor and joint broker.
Failure to appoint a replacement NOMAD in a month will result in the company being de-listed from AIM.