Shares in Corero Network Security dropped over 15 per cent on Friday after the network security and business software provider announced plans to place 27m shares at 15p each with both new and existing shareholders.
The proposed placing would raise up to £4.05m before expenses, which would provide ongoing funding for the continued development of the company's 'First Line of Defense' product proposition, which prevents unwanted data traffic from reaching and overwhelming firewalls and other infrastructure components.
8.13m new ordinary shares will be placed with new and exisiting shareholders, while a conditional subscription of 18.87m shares will be made by certain directors of the company.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The group used the announcement as an opportunity to update investors on its recent performance, saying that its Business Systems division performed strongly in 2012 and said this strong growth expected to continue.
In addition, Corero said its Network Security division has a differentiated network security offering which, together with the infrastructure which has now been established, provides the platform from which to grow the business.
The share price fell 15.38% to 16.50p on Friday.
NR
-
Who is the richest person in the world?The top five richest people in the world have a combined net worth of $825 billion. Who takes the crown for the richest person in the world?
-
Top 10 stocks with highest growth over past decade - from Nvidia, Microsoft to Netflix, which companies made you the most money?
We reveal the 10 global companies with the biggest returns since 2013. One firm has posted an astonishing 9,870% return, meaning a £1,000 investment would now be worth almost £82,000.
