Shares of Feedback PLC (AIM:FDBK) fell 49% after the company unveiled a discount fundraiser that could bring in around £6.2 million.
Driving the tumble was the fact management has been forced to more than halve the price of the shares to 20p to get the new investment round off the ground.
Feedback will bring in £5.2 million via an accelerated placing and hopes to net as much as £1 million via a retail offer of stock.
It will use the influx of cash to expand its Bleepa platform through a new partnership with a major UK primary care provider.
In morning trade, the shares were down 19.5p at 25p.