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Purplebricks shares plunged to an all-time low on Friday, dropping 21% to just 7.86 pence in a single day.
The stock market crash followed an announcement that the struggling online real estate firm was putting up for sale and warned of deepening losses.
The company said its recent restructuring plan, aimed at concentrating investments in key regions that are still profitable, has cost more than expected and has disrupted sales rather than boosting them.
The company has been further hampered by the downturn in the real estate market in recent months, as steep rises in mortgage rates have deterred buyers and vendors.
Purplebricks said adjusted underlying losses for the full year would be between £15m and £20m.
Alongside the lowered guidance, Purplebricks issued a strategic review that it said “whether or not it will lead to the sale of certain of the company or its divisions and assets.”
The online realtor has seen its stock price plummet over the past few years following a string of woes.
Regulatory failures are hurting companies and contributing to the decline. Shares of AIM-listed companies fell from 103p in early January 2021 to 95p in December 2015.
Shares of online realtors have plunged from a 2017 high of 525 pence.
Lecram Holdings Limited, the beneficial owner of a 5.16%% stake in Purplebricks, has again called for the dismissal of Purplebricks Chairman Paul Pindar.
Activist investors have long called for Harry Hill, former chairman and CEO of Countrywide and co-founder of Rightmove, to join the board.
Hill was one of many industry experts who posted comments on the current situation at Purplebricks on EYE last week.
Purple Brick chairman faces fresh calls to resign after major company announcement
