SRT Marine Systems PLC (LSE:SRT) shares sunk 12% lower to 51p on dilution after it announced plans to raise up to £3.95mln through the issue of up to 7.9mln new ordinary shares at 50p each via a placing and a retail offer.
The placing is expected to raise minimum gross proceeds of approximately £3.20mln through the issue of 6.4mln shares at the issue price. The retail offer through PrimaryBid is expected to raise gross proceeds of up to £0.75mln through the issue of up to 1.5mln shares at the same price.
The issue price represents a discount of approximately 13.79% to the SRT Marine closing mid-market price of 58p on 22 June 2023 The new ordinary shares, assuming full take-up of the placing and the retail offer, would represent approximately 4.35% of the company's existing ordinary shares and approximately 4.17% of the enlarged share capital.
The company said it intends to use the net proceeds of the fundraising to facilitate accelerated growth through provision of working capital for the company's systems and transceivers divisions.
In a statement, Simon Tucker, CEO of SRT commented: "In the last few years, SRT has transformed its prospects as demonstrated by a 265% increase in revenues to £30 million last year, a current forward contract order book of £160 million, and a pipeline of new system contract prospects which has grown to £1.4 billion from which we have also recently announced a further award notification.
"This fund raise is timed to support this acceleration of our business."