RS Technologies says it needs immediate financial help; stock down 16 per cent Fri Sep 24, 4:50 PM
The Canadian Press
By The Canadian Press
CALGARY - Shares in RS Technologies Inc. (TSX: RS.TO) plunged more than 16 per cent in very heavy trading Friday, a day after the company disclosed it will need additional funding by early next month in order to continue as a going concern.
At the close, the stock was down half a cent or 16.67 per cent at 2.5 cents on volume of almost 14.7 million shares, making it the most active issue on Toronto's main board.
In a statement issued after the close of markets Thursday, the developer of advanced composite material products for infrastructure markets said it was continuing to use proceeds from a $2-million bridge financing completed in early August to fund general working capital deficiencies.
But the company said it anticipates that it will require additional short-term funding and a long-term financing solution "by early October 2010 in order to continue as a going concern."