(Alliance News) - Tekcapital PLC on Monday said it has raised GBP2.0 million in an oversubscribed placing of 13.3 million new shares at a price of 15 pence per share.
The placing price represents a 14% discount to the shares closing price of 17.50p on Friday, being the last business day before the announcement.
Shares in the London-based intellectual property investment company were down 8.6% to 15.99p each in London on Monday morning.
Tekcapital explained that the proceeds will primarily be used to "accelerate the growth of the company's portfolio companies."
It noted that GBP1.0 million will be used to build commercial inventory of MicroSalt Ltd due to significant forthcoming orders, and GBP500,000 for facility build-out for Guident's new Remote Control Monitoring Centre and for fabrication and testing of their regenerative shock absorbers for prospective clients.
Microsalt is a low-sodium salt manufacturer. Guident is currently developing remote monitoring and control software to improve the safety of autonomous vehicles and land-based delivery devices.
The placing was undertaken by the company's broker SP Angel Corporate Finance LLP.
Following admission of the shares, 178.2 million shares will be in issue. This is expected to be on or around Thursday.
Chair Clifford Gross said: "We are pleased to announce this oversubscribed offering to facilitate the further significant progress of our portfolio companies."
By Sophie Rose; Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2023 Alliance News Ltd. All Rights Reserved.
TekCapital (TEK)