27th Aug 2015 09:16
LONDON (Alliance News) - Filtronic PLC Thursday proposed a placing to raise GBP4.5 million, and also to cancel its trading on the main market of the London Stock Exchange to move instead to AIM, as it believes this market is more appropriate for its size.
Additionally, the company is seeking shareholder approval to reorganise its share capital to reduce the nominal value attached to existing ordinary shares in a way that does not affect their economic value. It intends to reduce the existing 10 pence nominal value by sub-diving each share into one new share of 0.1 pence, and a one deferred share of 9.9 pence each.
The electronics products company proposed a placing of 90 million shares at 5.0 pence each, representing a 35.5% discount to its closing price of 7.75 pence Wednesday. Shares in Filtronic were down 25.4% at 5.78 pence Thursday morning.
It plans to use the proceeds of the placing to finance its working capital requirements as it introduces its new advanced integrated antenna products, and moves them to volume production.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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