RC Fornax PLC (AIM:RCFX) shares were down nearly 40% in Monday's trade, as the engineering consultant is raising £2.25 million in an equity placing.
The funding, announced after Friday's close, will also include a retail offer targeting up to £500,000 via the RetailBook platform.
New shares are being priced at 6p each. In London, the RC Fornax price moved accordingly, giving up 3.75p or 38.46% from Friday's close, down to 6p.
The company told investors, in Friday's statement, that proceeds will support the development of the Procure X Marketplace, a self-serve marketplace which aims to connect verified SMEs with defence buyers quickly and securely, as well as providing working capital into the business as it pursues upcoming potential contract wins.