Search Share Prices
The People's Operator shares plunge after subscriber, funding warning
Shares in mobile phone outfit The People's Operator plunged on Tuesday after the company said subscriber levels would not meet forecasts and it needed a new financial plan.
It added that it was unlikely that more cash could be raised through an exercise of warrants and would need more funding in the second half of 2018.
"Consequently the board has been examining other financing options," the company said.
"The board is negotiating final terms with a third party to migrate its US customer base to the purchaser's platform. Shareholders and investors should note that no definitive documents have been signed at this stage and there is no guarantee that the deal will complete."
"It is envisaged that the deal will comprise a cash payment in respect of each customer successfully transferred and completion will also release the various sums held as deposits and assurances by the company's US counterparties, which will revert to the company."
"Although the Company will retain its licence to operate in the US, the remainder of the US operation, including the small office in New York, the outsourced customer service operation and the outsourced legal and compliance functions will be closed."
"This will result in considerable cost savings, with overall monthly cash burn reducing by approximately 35%. The business will be left focused exclusively in the UK and the target overall number of customers required to reach profitability at the net level will fall significantly."