Shares in fluid technology firm Pursuit Dynamics crashed 77% on Monday morning after Procter and Gamble ended an agreement to use the former's technology.
Pursuit has now been forced to undertake a strategic review of its business and said profits would be "materially below" previous expectations.
The firms signed an agreement in 2010 that saw P&G developing specific applications using Pursuit's reactor technology in a wide range of its production processes.
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However, following completion of evaluation trials, the American multinational decided it would not pursue further evaluation or development or enter into exclusive licensing discussions with Pursuit.
"As a result of this, the company's revenues for the year ending 30 September 2012 will be materially below the Company's earlier expectations," said interim Chief Executive, Jeremy Pelczer.
"The company has been undertaking a strategic review of the business and in light of the P&G decision the review will be accelerated to allow an update to be provided by the end of June 2012," he said.
"Although the resulting revenue shortfall will constrain growth we will continue to pursue a range of commercialisation opportunities while we conduct the strategic review."
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