Shares in Metals One (LSE:MET1) fell 50% in early trading after the company announced a fundraising plan that includes a £5 million equity issue and a convertible loan.
The financing aims to support its mineral projects in Finland and Norway while providing working capital.
The company has secured an initial £600,000 interest-free loan to cover short-term commitments, with a further £4.4 million to be raised through a warrant-based equity issue. Additionally, a £100,000 retail offer will allow existing shareholders to participate on the same terms.
Metals One is also seeking shareholder approval for a 10:1 share consolidation. The company said the funding would strengthen its financial position and support potential acquisitions to expand its commodity portfolio and global footprint.
In the first hour of trading, the stock was down 0.21p at 0.21p.