Shares of Cazoo Group Ltd (CZOO) jumped 31% on Thursday after the company issued a statement revealing its current financial position.
CZOO is currently trading at $10.98, up $2.62 or 31.34%, on the Nasdaq. The stock opened its trading at $8.89 after closing Wednesday at $8.36. The stock has traded between $2.11 and $189.00 in the past 52-week period.
Last Month, Cazoo announced that it was pulling out of used car sales and moving into the marketplace model to compete with companies like Motors and Auto Trader. The group now has 14,000 cars listed on its website.
The company said it has sold most of its used car inventory, paid off stocking loans and cut staff numbers.
Cazoo said it needed to raise more money to remain viable in the medium to long term. It is also late in filing its accounts.
"Notwithstanding our pivot to a marketplace model and the various asset disposals, we still need to raise additional capital in the future to continue as a going concern in the medium- to long-term.
"We currently have no offers to provide outside capital, or otherwise, to address this need. We have been pursuing strategic alternatives for the business or parts thereof, and while we have received interest for parts of the company's business and assets, we have not received any offers that would, if consummated, enable the company to continue as a going concern in the medium- to long-term."
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