Drumz PLC (AIM:DRUM) shares fell almost 16% to 0.57p as the investing company said it was raising money at a discount to acquire Acuity Risk Management (ARM), a supplier of governance, risk and compliance software and services.
The AIM-listed outfit, which already owns 25% of ARM shares, announced a conditional fundraise of £1.45mln before expenses at a price of 4.5p per share, a discount of approximately 33.3% to the last closing price.
Drumz has proposed acquiring the balance of the ARM shares for a total consideration of roughly £3.6mln, of which £0.5mln will be in cash and the rest shares.
If the acquisition is approved by shareholders, it is also proposed that the name of the company will be changed to Acuity RM Group PLC.