Shares of Alva-based Omega Diagnostics Group fell another 25% on Monday after it confirmed it is in discussions “with certain investors and shareholders” regarding a potential equity fundraising at a discount.

The news followed the announcement on January 19 that CEO Colin King would step down with immediate effect and that former chairman Bill Rhodes, a non-executive director, will step down at the end of February 2022.

Jag Grewal, former managing director of the health and nutrition division, was appointed CEO.

On December 10, Omega shares fell about 30% after it published a stock exchange statement about a legal fight with the UK Government’s Department of Health and Social Care (DHSC) over a £2.5 million repayment being demanded by the DHSC related to a contract for COVID-19 lateral flow antigen tests.

Omega shares have fallen about 90% over the past 12 months.

The shares were trading around £1 a year ago but have since fallen to about 8p and the firm’s stock market value has slumped to around £14 million.

Omega said in a stock exchange announcement on Monday: “Omega, the specialist medical diagnostics company focused on industry-leading Global Health (CD4 and COVID-19) and Health and Nutrition products, notes the recent online speculation and confirms that it is in discussions with certain investors and shareholders regarding a potential equity fundraising.

“Market conditions remain challenging and accordingly any issue of equity would be at a discount to the current share price. 

“Any fundraise would include an open offer to accommodate retail investors.

“As per the announcement of 19 January, the company has significant cash resources.

“Accordingly, there is no immediate need to raise additional capital and the company may choose not to proceed with a fundraising until such time as conditions are more favourable.

“A further announcement will be made in due course as necessary.”