AIM stock Agronomics (LON: ANIC) has seen its share price plunge on Tuesday after it announced a conditional subscription and placing to raise a minimum of £50 million.
Agronomics' share price is down 32.43% since the announcement, priced at 25p.
The cellular agriculture investor said it will issue over 227.3 million shares at 22p per share with warrants, exercisable at 28.5 pence per share with a two-year expiry, attached to the fundraising shares on a one-for-one basis.
The issue price represents a 24.9% discount to the 20-day volume-weighted average price (VWAP) of 29.3 pence per share.
The conditional subscription has raised £28.88 million through the proposed issue of 131.3 million shares at the issue price, while the conditional placing is expected to raise a minimum of £21.12 million through the issue of a minimum of 96 million shares.
Agronomics said it will use the net proceeds to further finance current portfolio companies and projects, investment in new opportunities within the “cultivated meat” sector, and development and commercialisation of intellectual property where the company holds an interest.
“Agronomics has expanded rapidly over the past two years, and this financing will further accelerate its growth,” said Richard Reed, Non-Executive Chairman of Agronomics.
“We anticipate it will provide the full funding to support our existing portfolio companies through their next financing rounds, while also giving us sufficient capital to pursue acquisitions of new investments in this exciting field as it enters into what we expect will be a multi-decade growth phase,” he added.
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