Tekcapital PLC (LSE:TEK) shares fell more than 10% in Monday’s early deals as the market accounted for a £2mln equity placing.
The company, in a statement, said it is issuing some 13.3mln new shares priced at 15p each.
In London, the AIM-share moved 1.53p or 8.74% lower to trade at 15.97p – after initially moving to 15p at the open.
"We are pleased to announce this oversubscribed offering to facilitate the further significant progress of our portfolio companies," said Tekcapital chair Clifford Gross.
Tekcapital told investors the new funds would be used to accelerate the growth of the company's portfolio companies.
It earmarked £1mln for investment with MicroSalt Limited, to support significant forthcoming orders, whilst £500,000 will go to Guident supporting its new remote control monitoring centre and for fabrication and testing of their regenerative shock absorbers for prospective clients. The remainder will be used for working capital.