30th Apr 2015 08:17
LONDON (Alliance News) - Arria NLG PLC shares plunged on Thursday morning after the company said its contract with Shell Exploration & Production Co, part of Royal Dutch Shell PLC, has been terminated and that the loss of the contract will have a material adverse impact on its results for the year to the end of September.
Arria said Shell has terminated the contract in line with the terms of the deal but said the company will consider using Arria's natural language generation technology again in the future.
But though the company will receive a termination payment, Arria said the loss of the contract will have a material impact on its results for the year to September 30, with revenue for the year to be significantly below market expectations.
In addition, Arria said it was holding talks until Wednesday with potential institutional and other investors for an equity fundraising at a significant discount, but that these talks had been predicated on revenue expectations which the termination of the Shell deal has thrown into doubt. As a result, those talks have been suspended.
Arria said it intends to re-enter talks with potential investors to explore the provision of additional capital in light of the reduced revenue expectations.
Arria shares were down 77% to 7.15 pence on the news, the worst performer in the London Main Market.
By Sam Unsted; [email protected]; @SamUAtAlliance
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