14th Aug 2018 11:38
LONDON (Alliance News) - Shares in React Group PLC dropped on Tuesday as the company said it raised GBP420,000 via share issue at at discounted price.
Shares were trading 33% lower at 0.25 pence each following the news.
The company said it issued 140 million shares at 0.3p per share. The issue price represented a 20% discount on Monday's closing middle market price of 0.375p.
React said it will use the funds raised in the placing to strengthen its balance sheet and secure additional working capital which "will enable it to target larger contracts in its core areas of expertise".
The shares issued represent around 34% of the company's share capital. Admission to trading on AIM is expected to occur on September 3.
The placing was undertaken by Peterhouse Capital Ltd.
The company's major shareholder, Helium Rising Stars Fund, agreed to participate in the placing.
Helium, which owns 23.74% of the company, will subscribe for an additional 33.2 million shares, raising its total number of React shares owned to 98.6 million.
Related Shares:
React Group