The Kanabo Group Plc (LON: KNB) share price plunged 4.92% after announcing that it had completed fundraising to raise approximately £2.54 million via the issue of 88,194,443 new Ordinary Shares (Fundraise Shares).
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
Furthermore, the company agreed to issue investors warrants to purchase up to 44,097,220 new Ordinary Shares. The new shares were priced at 2.88p, representing a discount to Friday’s closing price of 3.09p, triggering the decline in Kanabo’s share price.
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YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
The warrants issued to investors allow them to purchase half an ordinary share of Kanabo at 5.76p, double the price offered to investors participating in the fundraising. The warrants are not exercisable within 90 days of the admission of the fundraising shares and must await the publication of a prospectus by the firm.
Avihu Tamir, Kanabo’s CEO, commented: “We are delighted to be announcing this fresh capital injection, which further endorses the strength and quality of our business and highlights the confidence we have in our growth strategy. This raise will not only accelerate the roll-out of our online platform but will also enable our team to pursue a number of exciting commercial opportunities.”
The funds raised today will help expand Kanabo’s digital health services and boost its technology and network growth investment. The funds will also help Kanabo develop more products focused on pain management and general working capital needs.
Kanabo also announced the appointment of a new non-Executive Chairman, Ian Mattioli MBE, immediately. Ian is the co-founder and CEO of a leading UK pensions and wealth management consultancy and has a wealth of experience in wealth management, financial services and capital markets.
The appointment of Ian Mattoli as Kanabo’s non-executive chair has seen Mr David Tsur, who has been Kanabo’s non-Executive chair since the company was listed on the LSE in February 2021, transition to the Deputy chair role.
Ian Mattioli, MBE, commented: “I am delighted to join Kanabo as a Chair and am impressed with the Company's commitment to personalised, accessible, and affordable healthcare. With its leading-edge technology and disruptive products, Kanabo is poised for significant growth in the digital health sector. I am keen to contribute my experience and knowledge to support Kanabo in its future success.”
*This is not investment advice.
Kanabo share price.
The Kanabo share price fell 4.92% to trade at 3.09p, from Friday’s closing price of 3.25p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.