Pineapple Power Corporation PLC (LSE:PNPL) shares fell 12% after the special purpose acquisition company (SPAC) announced it had raised £350,000 at a price of 3p for general working capital as it looks to retain sufficient funds for any potential acquisition in the renewable energy sector.
Pineapple, which appointed ex-ITM Power boss Graham Cooley to its advisory board in February, said it had secured the majority of the funds via a subscription by director Claudio Morandi, who then sold them all to investors introduced by fellow director Andrew Holland.
Holland and former director Peter Mills also subscribed to shares on their own account.
Pineapple, which announced a cash balance of £0.24mln in its last interim results for the six months to June 2022, used this convoluted method as it is currently unable to issue new shares without an FCA-approved prospectus or an exemption.
Last year the company walked away from a proposed acquisition of BVP Investments as final terms could not be agreed.
In July it raised £357,900 by way of a placing also at 3p per share, with Holland, Mills and Clive de Larrabeiti, corporate finance advisor, subscribing.
The shares fell 12% to 3.3p today.