Shares in Cel AI PLC (LSE:CLAI) fell 28% on Monday after the company announced a heavily discounted £10 million fundraising through a placing and direct subscriptions priced at 0.2p per share.
The deal will see the issue of 5 billion new shares, subject to shareholder approval, and was conducted via an accelerated bookbuild led by OAK Securities.
The new funds will be used to acquire Bitcoin and support ongoing operations, as part of Cel AI’s strategy to combine artificial intelligence innovation with a Bitcoin-focused treasury model.
The company said the proceeds would offer greater financial flexibility and act as a hedge against inflation. Despite the strategic aims, the steep discount to the prevailing share price before the announcement triggered a sharp sell-off.
Cel AI has promoted a dual thesis of digital asset accumulation and AI platform development since its listing, and said the latest capital raise would help advance both initiatives.
The stock fell 0.13p to 0.32p. However, that is still well above the notional share price post-funding, which should be 0.219p.