The turmoil at AIM-listed alternative business structure Quindell – which lost 45% of its value last week – has continued unabated this morning after announcing that its financial adviser and joint broker has resigned.
Having closed at 68.5p on Friday, the shares plunged by 24% to 52p in early trading, having been around 650p in the early part of 2014. At close of trading on Monday, they were at 55.5p.
Quindell said that Canaccord Genuity submitted its one-month notice of resignation as the company’s financial adviser and joint broker on 21 October 2014, but has agreed that the resignation is effective today.
When contacted, Canaccord Genuity declined to comment on the reasons for its move.
The news comes in the wake of a Sunday Times report yesterday that Quindell has opened talks with hedge funds about “a potential cash injection”. The paper said Quindell “is believed to have met at least two hedge funds in recent weeks to discuss raising money against expected future income. It is understood Quindell went to the funds after failing to interest banks in a deal”.
However, in a statement to the Sunday Times, the company insisted it had no need for additional cash. It said: “Quindell is regularly approached by, and opens discussions with, funds and financial institutions who understand the quality of its receivables and are familiar with the cashflow profile of legal services work. The company has no current need for any third-party financing.”
It refused to comment on further press speculation that the cash was being sought for a potential management buy-out.
The falls last week came in response to concerns over three directors’ share dealings and the company’s largest institutional investor halving its stake.