British online directory services company Scoot.com has lost 68 per cent of its value after saying it would soon run out of cash and urgently needed new funds to stay in business.
"The group's ability to trade beyond September will be dependent upon its success in raising capital from external sources," Scoot said in a statement outlining routes it hoped might provide that cash.
Those fundraising options featured the sale of Loot, the classified advertising business it bought for £180 million sterling last July, and/or a share issue, Scoot said.
It also unveiled cost-cutting measures including 285 job losses, chief executive Mr Robert Bonnier's departure and the ending of free trial periods for new sellers.
In morning trade, Scoot's share price was 68 per cent lower at 2.5p, valuing it at £16 million - a far cry from the heady heights of £3.74 seen in March 2000.
Its announcement came the day after another former new economy darling, Redstone Telecom, whose share price plummeted to one penny from near £10.00, succeeded in raising fresh funds to keep it afloat by selling 2.6 billion new shares at one penny apiece.
Scoot's largest shareholder is French media giant Vivendi Universal, which owns about a quarter of Scoot's issued share capital. Analysts forecast Vivendi would assume control of Scoot.
"This news does not come as a big surprise. Most people did not believe the company had enough capital to survive," said an analyst at a leading European investment bank.