Regional REIT (LSE:RGL) shares fell over 30% on Tuesday morning after confirming plans were being drawn up to raise funds through a significantly discounted share issue.
An equity raise of around £75 million is in the works to repay a £50 million retail bond, which is set to mature in August, Regional said in a statement.
“In the event that the company proceeds with an equity issue, the company expects that it would be at a material discount to the company's current share price,” the firm added.
Office specialist Regional was responding to press speculation following a trading update last month, which highlighted that the firm was exploring refinancing options in relation to the bond.
Shares slid 32.4% to 13.62p.