6th April RNS19 Apr 2020 12:47
It is worth considering the content of this RNS and its significance:
https://www.lse.co.uk/rns/AVCT/proposed-placing-to-raise-375-million-zw3u2ke8qipqzxh.html
This funding of £3.75 million introduces to the market on 24th April 2020 an additional 20,833,333 shares. This will bring the total number of shares to 207,981,280 from the current 176,036,837.
So if we supposed that the share price on the 23rd April 2020 closes at £1.00 to make it simple. It will open on the 24th April at 84.6 pence.
There may we’ll be significant other news which is highly likely to recover any immediate loss. But it is worth understanding this position. For some it may be a shock. But, this if it is agreed in the meeting mentioned in the RNS will be the case.
The bringing in of large share holders and the benefits of the raise will outlay the short fall in my opinion. Selling out and buying back in is unlikely to help as you may loose the other gains which may come by holding.
I just thought it might help people understand this forthcoming change in the companies holdings.
Read the details in the RNS to see why they felt this is required and the key objectives.
I trust this is helpful to investors. It did not change my decision to invest and it shouldn’t change yours.
Cheers RK