Shares in Eco Buildings Group PLC (AIM:ECOB) tumbled 38% after the company raised £670,000 through a deeply discounted share placing at 4p, 22% below its 30-day average.
The fundraising saw 16.75 million new shares issued, including a £250,000 direct subscription from a new investor. The funds will go towards installing a new production line at its manufacturing site to support rising demand from existing contracts in Albania and Kosovo.
Eco Buildings, which makes prefabricated homes using glass fibre reinforced gypsum panels, has agreements in place expected to generate up to €38 million in annual revenue.
New warrants were also issued to investors, exercisable at 13p. CMC CapX has been appointed as the company’s broker.
The shares fell 2.75p to 4.50p.