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LONDON (Alliance News) - Sabien Technology Group PLC on Monday said it raised GBP300,000 in a heavily discounted share placing.
Shares in the energy reduction technologies provider were trading down 23% at 0.10 pence each following the news.
Sabien's broker Peterhouse Capital Ltd issued 300 million shares at a price of 0.1 pence per share, a 26% discount to last Friday's closing price.
Following admission, expected on Friday, the company will have 890.3 million shares in issue, with the placing size representing 34% of the enlarged share capital.
The proceeds of the placing will be used to provide additional working capital for the company and in particular, to finance the delivery of the current sales order. Furthermore, the cash raised will also allow the board to continue to evaluate additional acquisition and investment opportunities to enhance the long-term value of the company for shareholders.
"The board continues to be very aware that any placing is dilutive for the existing shareholders and considered whether any pre-emptive offering might be possible, but concluded that it was neither practicable nor cost effective to do so at this time, particularly given current uncertain market conditions and the working capital requirements of the company," Sabien said.
It added: "The board has therefore sought to minimise the impact of dilution on existing shareholders by raising the minimum funding necessary to meet its current and projected needs and by seeking to minimise the discount of the placing price to the current market price."
