Shares in Mindflair PLC fell 10% on Monday after the company announced a discounted share placing and the re-profiling of its loan notes.
The equity fundraiser, which brought in £490,000 through the issuance of 81.7 million new shares at 0.6 pence each, represented an 11.1% price cut compared with the prior day's close.
The company also issued 78.2 million new shares to loan note holders to settle £469,433 of outstanding debt and reduced the exercise price of existing warrants.
This restructuring aims to defer repayment obligations, cutting the balance due under loan notes to £800,000 and extending repayment deadlines to 2025 and 2026.
The measures were taken to ensure financial flexibility while awaiting proceeds from planned asset sales.
Mindflair’s portfolio includes investments in AI-focused businesses through Sure Valley Ventures.
While the second fund continues to expand, the first is in the realisation phase, with several portfolio companies pursuing liquidity events.
In morning trading the stock was off 0.068p at 0.61p, valuing the business at £2.2 million. At the last results, the net asset value of its investments was almost £7.5 million, or 2.7p a share.