GSTechnologies Raises £1.75m Through Discounted Placing
Why we think this is bad
This equity raise is a significantly discounted placement, indicating low investor appetite for the company's shares. The 12.73% discount to the previous closing price is greater than 10%, which is a concerning sign. While the raise amount is relatively small compared to the market cap, the purpose of building a Bitcoin treasury could be seen as a speculative move rather than core business growth. There is also potential for dilution of existing shareholders, which is a negative factor.
Key Points
- GSTechnologies raises £1.75m through a discounted share placing
- New shares issued at 1.20p, a 12.73% discount to the previous closing price of 1.375p
- Funds to be used to build the company's Bitcoin treasury reserve
Summary
GSTechnologies Ltd has conditionally raised gross proceeds of £1,750,000 through a placing of 145,833,333 new shares at a price of 1.20 pence per share, representing a 12.73% discount to the previous closing price of 1.375 pence. The funds will be used to build the company's Bitcoin treasury reserve. This significantly discounted raise indicates low investor appetite and potential funding difficulties for the company.