Shares in Quadrise Fuels dropped on Wednesday after the company said it was planning to raise funds to finance additional staff.

The company, which is focused on developing a low-cost oil alternative called Multiphase Superfine Atomized Residue Synthetic Fuel Oil (MSAR), said it needed additional staff to support active programmes and address a portfolio of projects that had increased since it last raised funds in November 2012.

"The board favours a prudent approach to funding in these circumstances by securing a reasonable reserve to cover all eventualities. It has become clear that additional equity funds should be raised in the current year, preferably before the end of March 2014," it explained.

The group also reported that land-based tests on its early-stage MAN Diesel engine programme had been delayed as a result of external factors, and said the required information might not be available before the end of January 2014.

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