Shares of EMV Capital (AIM:EMVC) rose 10% following the announcement of a £1.5 million fundraising plan. Specifically, investors will have been drawn to the fact the stock in the subscription and retail offer is being sold at a 15% premium to Monday's close.
With the capital markets so tight, particularly at the junior end, it is rare to see an investment round so well supported, providing third-party validation of EMV's plans, analysts noted.
The funds, combined with EMV’s fee income, will be used over the next year to enhance operational efficiency and create value. Priorities include bolstering working capital, upgrading investor reporting systems for its corporate finance and venture capital arm, and accommodating a growing base of syndicated investors.
EMV also plans strategic hires to strengthen its operational capabilities and will allocate resources to reinforce its balance sheet. This includes maintaining flexibility for investments, particularly in venture-building initiatives.
In early trading, EMV was up 4.47p at 47.97p.