Shares of Newcastle-based utility cost consultancy Utilitywise fell 65% after it announced a strategic review that will include a formal sale process of the company.

“The strategic review will also consider all types of corporate transactions, including the sale of certain parts or the whole of the group,” said Utilitywise.

“In addition, the group intends to continue discussions with its shareholders and its bank in relation to a potential equity fundraising and bank refinancing, as detailed further below, alongside all other potential strategic options.”

The company added: “In addition to the requirement for new investments detailed above, the group has been in discussions with its bank in recent months with respect to the refinancing of its existing bank facilities, amounting to £25m in aggregate and which expire on 20 April 2019.  

“The group’s lending bank indicated its willingness to refinance those banking facilities at the same level, on the condition that other funding was also obtained from alternative sources, such that the combined funding allowed the group to make the necessary strategic investments detailed above.

“The group has therefore approached both new and existing investors to seek to conduct an equity fundraising, to provide sufficient additional equity capital to the group for its investment and working capital requirements alongside the refinanced £25m banking facility.

“At this stage, the group has not attracted a sufficient level of interest in the proposed equity fundraising to satisfy the group’s overall funding requirements for the period to 31 July 2021.

“As a result, the board has now concluded that it should commence the strategic review …”