Thruvision Group Announces Heavily Discounted £2.5m Fundraise
Why we think this is bad
The heavily discounted 29% raise price, significant 158% dilution of existing shareholders, and potential ongoing funding risks are very negative factors that outweigh the potential positives of additional working capital and existing shareholder support.
Key Points
- Proposed capital raising of minimum £2.5 million through issue of new shares
- New shares to be issued at 29% discount to previous closing price of 1.4p
- Funds to be used for working capital and growth initiatives
- Significant 158% increase in issued share capital representing dilution for existing shareholders
- Heavily discounted raise price indicates weak investor demand and raises concerns about company's financial health and growth prospects
Summary
Thruvision Group has announced a proposed capital raising of a minimum of £2.5 million through the issue of new shares at a 29% discount to the previous closing price. The funds will be used for general working capital and to invest in sales, marketing and product development. However, the significantly discounted raise price indicates weak investor demand and raises concerns about the company's financial health and ability to achieve its growth targets. The 158% increase in issued share capital also represents significant dilution for existing shareholders.