Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.
Shares of Braveheart Investment initially fell on Friday after the company announced the placing of 13.88 million new ordinary shares priced at 18p each.
The place will raise proceeds of £2.5 million, with the shares representing approximately 26.59% of the enlarged issued share capital of the company.
The price represents a discount of approximately 20.88% to the closing mid-market share price of an existing ordinary share on 12 August.
Braveheart CEO Trevor Brown has subscribed for 3,500,000 shares, and Free Association Books Limited, a company connected to Trevor Brown, has subscribed for 4,500,000 shares. Meanwhile, Vivian Hallam, Executive Director of the company, has subscribed for 833,333 shares.
Braveheart said it intends to use the proceeds to accelerate the development of Paraytec's Covid testing instrument by taking direct control of the final design and engineering packages. In addition, Paraytec will continue to seek partners for licencing, development, and potential sale.
“We are delighted to have been able to raise this extra funding which will enable Paraytec to pursue its new strategy,” said Brown.
The news saw Braveheart's share price initially fall as low as 19.4p. However, it has since regained those losses and more, currently trading at 23p, up 1.1%.
Braveheart 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 BRH shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies
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