The Verditek PLC (LON: VDTK) share price plunged 30.7% after announcing that it had raised £500,000 via a subscription of 111,111,111 ordinary shares priced at 0.45 pence per ordinary share. The company expects to receive the funds raised by 6 September 2023.
An adverse reaction from investors was expected, given that the price offered to the participating investors represents a 40% discount from yesterday’s closing price of 0.75p per share. The company intends to use the proceeds of the capital raise for general working capital purposes.
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The subscription was not underwritten, and the company issued the new shares based on the authority granted to it by shareholders during its annual general meeting on 25 July 2023. The Subscription Shares represent about 20.0% of the Company’s enlarged issued share capital.
Verditek has applied to the London Stock Exchange for the Subscription Shares to be admitted to trading on the AIM, and the company expects the admission to occur at or around 8:00 a.m. on 06 September 2023.
The Subscription Shares will be issued and credited as fully paid. They will rank in full for all dividends and other distributions declared, made or paid after their admission to trading on the London Stock Exchange.
After admission to the LSE, the new shares will be identical to and rank pari passu in all respects with the existing Ordinary Shares. The Subscription Shares will not be available to the public and are not being offered or sold in any jurisdiction where it would be illegal.
Verditek will have 554,649,417 Ordinary Shares in issue once the new subscription shares have been admitted to trading on the LSE.
Rob Richards, Verditek’s CEO, commented: “In these market conditions where it is tough to raise money, it is a clear sign of confidence in the Company’s future that a strategic investor chose to invest £500,000 and share our vision on where we think this Company will be in the future. The Directors believe that this raise will provide funding for the medium term.”
The Verditek share price.
The Verditek share price plunged 30.67% to trade at 0.52p, from Thursday’s closing price of 0.75p.
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