Windar Photonics PLC (AIM:WPHO) shares plunged almost 80% after trading resumed on AIM following a suspension lasting more than two months.
Shares in the wind-turbine technology company dropped 79.3% to 5.5p, compared with their pre-suspension closing price of 26.5p. The stock nevertheless remained 10% above the 5p price of its recent fundraising.
Trading was suspended on 17 June because of concerns surrounding the group’s financial position. The suspension was lifted at 7.30 am on Tuesday after the company completed a £5.12 million fundraising designed to address those concerns.
New shares issued through the placing, direct subscription, directors’ participation and retail offer were admitted to trading at 8am.
The fundraising included a significantly oversubscribed placing and direct subscription, with the subsequent retail offer attracting applications exceeding £900,000. The retail component was increased to £245,000, taking the total amount raised to approximately £5.12 million before expenses.
Investors subscribed for the new shares at 5p each, with fundraising participants also receiving warrants exercisable at 10p for 3 years.
Following admission, Windar’s enlarged share capital consists of approximately 200.6 million ordinary shares.
The substantial difference between the pre-suspension price and fundraising price, together with the increase in shares outstanding, prompted a sharp repricing when trading recommenced.
Windar develops LiDAR-based systems that measure wind conditions and help optimise the performance of wind turbines across multiple platforms.
