27th Nov 2018 10:13
LONDON (Alliance News) - Shares in Xeros Technology Group PLC plummeted on Tuesday as the company said it plans to raise GBP20.0 million in a heavily discounted placing and open offer of shares.
Xeros shares were trading down 27% at 23.46 pence each.
The company will issue 150.0 million shares at 10p each via a placing to raise GBP15.0 million. It will issue a further 49.6 million shares through an open offer at the same price to raise up to GBP5.0 million.
Xeros currently has just 99 million shares in issue and a market capitalisation of GBP23 million, so the new offering will triple its number of shares.
The company, which develops water saving technologies, said it will use the funds raised in the share offers to continue to invest in its business divisions, particularly in the Cleaning unit.
Chief Executive Officer Mark Nichols said: "These additional funds will allow us to continue to execute on our IP-rich, asset-light strategy to commercialise our technologies, which address the key global environmental issues of water scarcity and pollution."
The company expects admission of the new shares to trading on AIM around December 20.
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