By Samuel Indyk
Investing.com – Shares in Abingdon Health (LON:ABDX) were trading lower by as much as 27% on Wednesday morning after the company announced plans to raise funds by selling new shares.
The AIM-listed company said it plans to raise as much as £7.5 million in the offering to various investors. Abingdon said it plans to raise £3.7 million via an offering with the option to increase to £5.7 million. The company also plans to raise £0.3 million via a subscription and up to £0.5 million from a PrimaryBid offer for retail investors.
The issue price is set at 25.0 pence per share, representing a discount of 34.2% from Tuesday’s closing price.
Proceeds
Abingdon Health said a total of £3 million from the offering will be used, in the first instance, to cover a previously announced working capital shortfall expected to arise in the first quarter of next year.
The company also plans to invest up to a further £3 million gross proceeds in the product research and development initiatives to capitalise on growth opportunities in the areas of infectious disease. These areas include Flu, Hepatitis C, and Lyme disease.
At 11:11GMT, shares in Abingdon Health were trading lower by 26.3% at 28.00 pence per share.