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Purplebricks’ share price plunged to an all-time low on Wednesday, falling 12.5% in a single day to just 6.36p, before recovering to close the day at 7.04p.
The share price was in freefall yesterday afternoon before the struggling online estate agency announced that it was giving Strike more time to complete sale talks.
Strike now has until 10 May to decide whether to make a formal offer for Purplebricks after more ‘detailed’ negotiations in recent weeks.
The company recently announced that its ‘turnaround’ plan aimed at focusing investment in key regions where it is still profitable ended up costing it more than it expected, and disrupting sales instead of boosting them.
The online estate agency has been further hampered by the downturn in the property market in recent months, driven by the sharp rise in mortgage rates deterring purchasers and vendors.
Purplebricks said full-year adjusted underlying loss would come in between £15m and £20m – larger than the previously expected loss of between £8.8m and £11.3m.
The online estate agency has seen its share price drop sharply over the past couple of years following a series of woes.
Regulatory failings have had an adverse impact on the company, contributing to the fall. Shares in the AIM-listed firm have fallen from 103p at the start of January 2021, while the company floated at 95p in December 2015.
Shares in the online estate agent have plummeted since its all-time high in 2017 of 525p.
Lecram Holdings Limited, beneficial owner of a 5.16%% stake in Purplebricks, has long called for Paul Pindar, chairman of Purplebricks, to be removed from the role.
The activist investor wants Harry Hill, former chairman and CEO of Countrywide and co-founder of Rightmove, to be appointed to the Board.
Purplebricks sale process ‘ongoing’ as agency given more time to ‘Strike’ a deal
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