Tekcapital PLC (LSE:TEK) shares moved lower in Monday morning’s deals, pricing in equity dilution from its latest share placing.
The investment firm, in a statement, said it would be issuing 14mln new shares priced at 16p each to raise £2.25mln of new capital in a placing arranged by stockbroker SP Angel.
It plans to use the funds to support its investee MicroSalt, which is building commercial inventory, with a £600,000 investment and it will put a further £1mln into Guidant.
The remaining funds will support Tekcapital’s working capital needs.
"We are pleased to announce this oversubscribed offering to facilitate the further good progress of our portfolio companies," said Clifford Gross, Tekcapital's executive chair.
In London, Tekcapital shares dropped 16% to trade just above the placing price, changing hands at 16.99p each.