Shares of Catenae Innovation PLC (LON: CTEA) have plunged after the open on Wednesday, after the company said it has issued 52.4 million new ordinary shares.
The digital media and technology firm has issued 50 million new ordinary shares raising £1 million, while they have also converted £13,000 of remuneration liabilities to directors into 65,0000 new ordinary shares. There has also been the settlement of other current liabilities that the company has, amounting to £35,000 into 1.75 million ordinary shares.
The shares in the placing and conversion have been priced at 2p per share.
Catenae said the placing was oversubscribed and conducted through Brandon Hill Capital Limited, its broker.
As part of the deal, Brandon hill received a warrant of over 750,000 ordinary shares which can be exercised at 3p per share up to 3 years following the placing date.
Alongside the placing update, the UK based business also said that its Covid-19 testing platform continues to be utilised across various sectors, and has recently been implemented by 18 pharmacies, a festive season outdoor event, a UK mobile operator, and Badminton England.
“We are pleased to have been able to raise capital, which will allow us to accelerate the execution of our growth strategy both through our joint venture, Synovate Global Limited, and independently as Catenae,” commented Guy Meyer, Catenae's CEO.
The company said an application will be made to the London Stock Exchange to admit the 52,400,000 new ordinary shares to trading on AIM. Admission of the shares is expected to occur on the 3rd of February 2021.
News of the placing saw Catenae's shares plunge. They are currently sitting at 2.22p, down 15%.
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