11th Aug 2014 08:26
LONDON (Alliance News) - Totally PLC saw its shares drop almost 20% Monday morning, after it said it had raised GBP400,000 before expenses through the issue of 80 million new shares with new and existing investors at 0.5 pence per share.
The digital healthcare products company said the placing price represents a 20% discount to its closing mid-market price on August 8. The 80 million new shares represent more than 25% of the enlarged issued shares capital of the company.
Totally saw its shares drop 19.8% Monday to 0.501 pence, in line with the price at which the company raised its new funds. The company's stock was one of the biggest fallers on London's AIM market Monday morning.
"The additional funds will be used to allow the company to develop new business models within Totally Health, which will build upon its current services provided to the healthcare sector and develop further routes to market, and for general working capital purposes," said Chief Executive Wendy Lawrence in a statement.
Totally said its Totally Health business has won a number of new contracts, and has strengthened its new business pipeline.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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