(Alliance News) - Shares in DeepMatter Group PLC lost almost 40% of their value early Friday following the announcement of a deeply discounted share offer and a downgrade to its annual revenue guidance.
The digital chemistry data company's shares were down 39% at 0.38 pence in London on Wednesday morning.
DeepMatter will carry out a share placing and subscription at a price of 0.1 pence per share to raise GBP2.6 million. It also will make an open offer at the same price to raise up to additional GBP250,000.
The group is dependent on the fundraise and associated proceeds in order for it to continue to "meet its forecasts and execute its strategy", DeepMatter explained. It had first announcement plans for an equity raise on Friday last week.
The raise is being financed by a "small number of new professional individual investors and existing institutional shareholders", the London-based firm explained. The placing is being conducted by Canaccord Genuity.
Without the fund raise, DeepMatter said it "would have to immediately re-evaluate the strategy and outlook of the group".
Separately, DeepMatter said it now expects its multi-year contract with AI biology-based startup Standigm to be signed in 2022, rather than 2021, which will result in revenue for 2021 being lower than previous expectations.
By Will Paige; willpaige@alliancenews.com
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