29th Jun 2018 12:13
LONDON (Alliance News) - Management Consulting Group PLC on Friday said it has begun a placing and open offer to raise GBP8.5 million net, which it needs to keep going for another year.
It is to issue 1.00 billion new shares at a price of 1 pence per new share, which is well over double the amount of shares currently in issue. This is a 68% discount to its closing price on Thursday, with shares down 14% Friday at 2.70p.
Management Consulting's open offer will be 45 open offer shares per 23 existing shares, meaning it is increasing its share capital by 66%.
The company said that, if the raise does not go ahead, it will face a liquidity shortfall of GBP200,000 next February, following by the same amount in June and July 2019. On top of this, there would then be a GBP2.5 million shortfall that August.
If there was no prospect of remedying this situation, it said, at that time then insolvent liquidation would become likely.
Related Shares:
MMC.L