genedrive Raises £1M Through Discounted Placing
Why we think this is bad
The significantly discounted 17.8% raise is a negative signal about the company's ability to raise capital at more favorable terms, indicating potential continued funding risks and dilution for existing shareholders. While the additional working capital could support the company's growth plans, the market may be skeptical given the discounted raise.
Key Points
- genedrive raises £1.0 million through a discounted share placing
- The placing price represents a 17.8% discount to the previous closing price
- The funds will provide additional working capital to pursue commercial opportunities
- The company has also launched a RetailBook Offer for up to £250,000 at the same issue price
Summary
genedrive plc has conditionally raised £1.0 million through a subscription for 66,666,666 new ordinary shares at a price of 1.5 pence per share, representing a 17.8% discount to the previous closing price. The net proceeds will provide the company with additional working capital as it actively pursues a range of commercial opportunities in the UK and internationally. The company has also launched a RetailBook Offer for up to 16,666,666 new ordinary shares at the same issue price.