Itaconix raising £0.3m to bolster EU inventories

22nd Apr 2022 08:09

(Sharecast News) - Plant-based polymer specialist Itaconix announced a placing to raise £0.3m on Friday, to help strengthen its European Union inventories.

The AIM-traded firm said the placing was being conducted through a direct subscription with existing institutional shareholder IP Group, as well as its own management.

It said it would issue and allot 6,666,668 new shares at, in the case of IP Group, an issue price of 4.5p per share, and at an equivalent price of 5.9 US cents per share for management.

The issue price of 4.5p represented a 10.9% discount to the closing mid-market share price on 21 April, and a premium of 1% to the 30-day volume-weighted average price to 21 April.

Itaconix's board said the new shares were being issued under the shareholder approval given at its 2021 annual general meeting.

"The proceeds of the fundraise will be used for general growth working capital, predominantly to strengthen finished goods inventories held in the EU to assure reliable and ready delivery times to EU customers," the directors said in their statement.

At 0948 BST, shares in Itaconix were up 3.96% at 5.25p.