Network security company Corero Network Security PLC (LON:CNS) pulled off the rare feat of announcing a discounted share issue and seeing its shares rise.
Corero shares rose 4.4% to 5.35p after the company informed the market it planned to raise around £5mln by placing shares at 5p a pop.
Much of the £5mln - £4.2mln, to be precise – to be raised will come from the pocket of the company’s chairman, Jens Montanana, subject to agreement on the City’s rules on takeovers being waived, as the new shares he intends to purchase would lift his stake from 34.1% to more than 50%.
Ordinarily, under these circumstances, Montanana would be obliged to make an offer to acquire the whole of the issued share capital but the company is seeing consent from the Panel on Takeovers and Mergers to have this obligation waived.