Catenai PLC (AIM:CTEA) shares fell 11% to 0.32p on Tuesday after the digital media and technology group confirmed it has repaid a £100,000 working capital loan and issued new warrants to the lenders involved.
The loan, first announced in January, was settled in full on 31 October and had been provided by a small group of backers, including Sanderson Capital Partners, a major shareholder and related party.
Under the loan agreement, Catenai has now issued a total of 33.3 million warrants over new ordinary shares, exercisable at 0.3p each until 31 October 2027.
Interim chief executive John Farthing authorised the release of the announcement, which contained inside information under UK market rules.
While the repayment removes a short-term funding obligation, the accompanying warrant issue will increase the company’s potential share base, a factor that may have weighed on sentiment.