Inspiration Healthcare Group PLC (AIM:IHC) tanked as it unveiled a £2.5 million fundraiser at a meaty 43% discount to the prevailing market price.
Most of the shares were issued conditionally at 14p to raise £2.4 million with the medtech’s directors and senior management chipping in for a further £75,000 worth.
In addition, a retail offer organised through Winterflood’s retail platform (WRAP) will raise up to a further £500,000.
Broker Liberum commented: "Inspiration has had a torrid year, with contract delays, customer destocking and regulatory holdups negatively impacting trading.
“However, we remain of the view that there is a good business at the heart of Inspiration. The pending £2.5m fundraise gives the new team time to get it back on a stable footing.
“We reduce our target price to 40p to take into account the dilution from the pending fundraising, but remain buyers."
Shares fell 28.6% to 17.5p.