Shares of UK intellectual property investment group Tekcapital plc (LON: TEK) are down on Thursday after the company said it has raised a total of £3.8m before expenses in an oversubscribed placing from existing and new institutional shareholders.
Tekcapital's current share price is 11.5p, down 20% from Wednesday's close.
The company issued 38,000,000 new ordinary shares of 0.4 pence each at 10 pence per share.
£1.25m of the funds raised will be used to exercise warrants and options held in Belluscura plc, which will increase Tekcapital's equity stake by approximately 70% to around 17.1m shares.
The remaining funds will be used to increase Tekcapita's investment in its portfolio companies Belluscura plc, Lucyd ltd, Salarius Ltd and Guident Ltd, to accelerate their growth.
“We anticipate that each of these companies will make significant progress in 2021 as they continue to execute their go-to-market strategies,” commented Clifford Gross, Executive Chairman of Tekcapital plc
“As previously announced on 08 March, Belluscura has recently been granted 510(k) clearance and marketing authorisation by the US Food and Drug Administration (FDA) for the X-PLOR2 portable oxygen concentrator and is investigating the potential listing on the AIM Market of the London Stock Exchange (or other recognised stock exchange),” added Gross.
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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.