Imaginatik places over two billion shares to provide working capital

Imaginatik shares plunged over 40 per cent on Friday after the technology company announced plans to place just over two billion ordinary shares with both new and existing investors at 0.0625p each.

Imaginatik shares plunged over 40 per cent on Friday after the technology company announced plans to place just over two billion ordinary shares with both new and existing investors at 0.0625p each.

The placing is expected to raise £1.26m before expenses, which will be used to provide additional working capital to fund the development of the group's business.

Additional, some of the group's directors have committed to swapping a proportion of their salary for equity to subscribe for up to 262.5m new shares at the placing price, raising a further £164,000.

Matt Cooper, Executive Chairman of Imaginatik, said: "We have been delighted by the strong support shown by existing and new investors. These funds will enable Imaginatik to continue to develop its innovation offering while remaining a public company on AIM.

"We believe that with innovation and enterprise-wide collaboration now moving into the mainstream our unique consultancy-led business model means our market opportunity is considerable and we therefore look to the future with optimism."

The share price declined 42.11% to 0.11p by midday Friday.

NR

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

Why we won’t see a house-price crash in 2021
House prices

Why we won’t see a house-price crash in 2021

Lockdown sent house prices berserk as cooped up home-workers fled for bigger properties in the country. And while they won’t rise quite as much this y…
18 Jan 2021
Inflation is the easiest way out of this – just don’t expect politicians to admit it
Inflation

Inflation is the easiest way out of this – just don’t expect politicians to admit it

The UK government borrowed £34.1bn in December, a record amount for that month. Britain's debt pile now amounts to 100% of GDP. How are we going to pa…
22 Jan 2021
When will the US stockmarket bubble burst?
US stockmarkets

When will the US stockmarket bubble burst?

With US stocks more expensive than before the Wall Street crash of 1929, there are growing signs of “mania”. But what will push markets over the edge?
22 Jan 2021