Enteq Technologies PLC's (AIM:NTQ) stock fell 42% in early trading following a heavily discounted sale of £1.5 million worth of stock.
The energy services company disclosed plans to issue 30 million new shares at 5p (Tuesday's close was 9p) through a placing and subscription.
An additional £500,000 could be added to the total through a retail offer to existing shareholders.
The raised funds will support the launch of Enteq’s SABER Tool, a rotary steerable system for directional drilling, targeting a US$2 billion annual market.
Proceeds will also expand the tool fleet and provide working capital, extending Enteq's financial runway until July 2025.
At 8.16 am, the stock was down 3.75p at 5.25p.