Mercantile Ports & Logistics (LON: MPL) have plunged on Friday after the company raised £9.6 million via a share placing.
The shares were priced at 0.45p, representing an 18% discount to Wednesday's closing price of 0.55p.
On 19 August, the company raised gross proceeds of £0.5 million at 0.45p per ordinary share via the PrimaryBid Offer.
It will therefore issue and allot a total of 111,614,477 new shares to satisfy the PrimaryBid offer.
MPL will issue 2,244,947,810 new shares under the placing, subscription, and PrimaryBid offer at the issue price of 0.45p per share.
The company said it will use the money raised to fund the servicing of new and existing contracts, the construction of further storage facilities, debt servicing, and general working capital purposes.
The company's shares have fallen over 18% to 0.45p following the news, although they are up 51.5% for the year to date.
MPL 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 MPL shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies
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