(Alliance News) - Catenae Innovation PLC said Friday it has issued 75.0 million shares in total, both to raise funds through a subscription and to convert existing liabilities.
The digital media firm raised GBP153,000 through a subscription of 38.3 million shares at a price of 0.4 pence each. As part of the subscription, Catenae will issue a warrant for each share subscribed for in the issue, exercisable for a period of two years.
Shares in Catenae were 8.7% lower at 0.708 pence on Monday in London.
In addition, some of the company's creditors have agreed to convert their existing liabilities into shares, leading to the issue of 36.8 million shares in Catenae at a price 1.1 pence per share for the settlement of GBP404,250 in aggregate liabilities.
The conversion and subscription is expected to strengthen the company's balance sheet and allow Catenae to use its cash resources to fund current and potential trading opportunities.
Catenae said the share issue eases the company's immediate working capital position, but stressed that it would need to raise further funds by the end of March.
Following the share issue, Catenae now has 107.2 million shares issued overall.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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