More Acquisitions PLC (LSE:TMOR), the reverse takeover company, flew as much as 85% higher after its newly appointed chairman and a new non-executive director increased their stakes in the group, at almost a 100% premium.
Neil Sinclair, the company’s chairman, and non-executive director Stanley Davis both purchased over 10.4 million shares at 1p each, leaving the two with stakes in the group of around 6.5%.
Shares for much of January have been trading at around 0.5p.
The cash generated from the share sale will be used for day-to-day requirements and to ensure there are enough funds for the costs of any acquisitions.
In total, the company is fundraising over £312,000 through the placement of more than 31 million new ordinary shares at 1p each, with two free warrants, exercisable at 1.5p, attached to each one.
Charles Goodfellow, a non-executive director, is expected to maintain both his position on the board and his 0.9% stake, while the company’s other NED Roderick McIllree will retire with immediate effect.
Rod McIllree, executive director of More Acquisitions, said: "The appointment of Neil and Stanley to the board of the company marks an exciting step towards the execution of a reverse take-over which is expected to be value enhancing for all stakeholders.
“They begin their tenure on a positive note by investing in the company at a significant premium to the market.”
Shares in More Acquisitions are trading at around 0.93p on Monday.