The share price of Alien Metals has plunged Thursday after it announced a placing to raise approximately £3.5 million through the issue of 412 million shares.
The company said it will be placing new shares to certain institutional and other investors for 0.85p per share.
The price represents a discount of approximately 21.3% to the closing price of 1.08p on 3 November 2021.
Alien Metals said the money raised will be applied to deliver the company's work programme over the next 6-12 months.
The company also announced that WH Ireland has been appointed joint broker with immediate effect.
Alien Metals shares reacted to the news by falling to a low of 0.802p. They are currently sitting at 0.94p, down 12.65%.
Alien Metals shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are UFO shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage . 68 % of retail investor accounts lose money when trading CFDs with this provider . You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money .
Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.