Tiger Alpha PLC (LSE:TIR) saw its shares soar 22% after announcing a £1.55 million raise and confirming its new AI strategy.
Gross proceeds are being raised through a placing arranged by Fortified Securities, selling shares at 0.375p each, alongside a capital reorganisation (a sub-division of shares, subject to shareholder vote)
“We are encouraged by the progress we are seeing across our AI-focused investments and believe this validates the strategic direction the company has taken," said chief executive Jonathan Bixby.
He added: “The strong support shown in the recent fundraising is a clear vote of confidence in our plan and provides the company with the resources to continue executing on its strategy and building long-term shareholder value.”
Tiger Alpha, which reported divestment of substantially all legacy resource investments for about £175,000, said proceeds will be used to advance its AI-focused investments and for general working capital.
In line with the move away from resources, Colin Bird stepped down as chairman from the start of the year, with NED Brian Stockbridge appointed as interim chairman.
The company hailed the performance of AI-focused investments include the Tiger Beta subnet, with over US$200,000 of alpha tokens under management, and a recently launched KDN-1 subnet, which has accumulated over US$280,000 of alpha tokens.
In London, the shares were up 22.3% changing hands at 0.52p each.