Shares in Xeros Technology Group PLC (AIM:XSG) fell 21% to 1.78p on Friday after the company announced plans to raise up to £6 million through a discounted share placing and retail offer.
The issue price of 1.75p per share represents a 22% discount to Thursday’s closing price.
The Sheffield-based firm, which develops technologies to reduce the environmental impact of clothing, said it will raise £3 million initially through a placing and subscription, with a further £2 million sought via a follow-on offer and up to £1 million from retail investors.
In addition, it has announced a retail offer that could bring in a further £500,000.
Xeros said the new capital will provide at least 12 months of working capital and fund the commercialisation of its laundry and filtration technologies.
Chief executive Neil Austin said the cash injection would help “accelerate the global adoption of Xeros’ technology.” A shareholder meeting to approve the fundraising will be held on 28 November.