9th Mar 2015 08:55
LONDON (Alliance News) - Imaging company DDD Group PLC saw its shares fall on Monday morning after it said it will launch a convertible loan note and share issue in order to shore up its finances.
The company said it has raised GBP350,000 via the issue of convertible loan notes due 2017. Arisawa Manufacturing Co Ltd, which holds a 21% stake in the company, has subscribed for GBP300,000 of the notes, with the remainder taken up by four company directors.
In addition, it has raised GBP475,000 via the placing of 23.75 million shares at 2 pence per share. The share issue was handled by Peel Hunt LLP.
DDD said it will use the net proceeds from the funding, of around GBP0.8 million, to finance business development and licensing activities over the next 12 months.
"The additional capital will strengthen the financial resources of the company as we continue our return towards operating cash break-even. The continuing support of our strategic commercial partners, existing shareholders and UK institutional investors represents a strong endorsement of DDD's turnaround business plan and its near-term growth prospects," said DDD Chairman Nicholas Brigstocke.
DDD shares were down 15% to 1.6 pence on Monday, one of the worst performers in the AIM All-Share index.
By Sam Unsted; [email protected]; @SamUAtAlliance
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