Belluscura Raises £4M in Discounted Placing
Why we think this is bad
The RNS announcement indicates that Belluscura has raised £4 million through a placing of new shares at a significant discount of around 69% to the current share price. This is a negative signal, as it suggests low investor appetite for the company's shares and could put downward pressure on the share price and valuation. The size of the placing, representing 118.3% of the existing issued share capital, also represents substantial dilution for existing shareholders. While the funds raised could support the company's growth and development, the terms of the placing are concerning and indicate potential challenges or negative sentiment around the business.
Key Points
- Belluscura raises £4 million through a placing of 199,151,375 new shares at 2 pence per share
- The placing represents a 69% discount to the current share price of 6.50 pence
- The placing shares account for 118.3% of the company's existing issued share capital, indicating substantial dilution
Summary
Belluscura plc, a UK medical device company, has announced that it has conditionally raised gross proceeds of approximately £4.0 million (approximately $5.0 million) through the placing of 199,151,375 new ordinary shares at an issue price of 2 pence per share. This placing represents a significant discount of around 69% to the company's current share price of 6.50 pence. The placing shares account for approximately 118.3% of the company's existing issued share capital, indicating substantial dilution for existing shareholders. While the funds raised could support the company's growth and development, the terms of the placing are concerning and may negatively impact the company's share price and valuation.