Plant Impact issues shares at deep discount

25th Feb 2010 14:15

The share price of crop productivity specialist Plant Impact slumped on Thursday after the company placed 14.22m shares at 15p each, a substantial discount to the prevailing market price. The company is raising £2.1m before expenses from the placing. The newly issued shares represent 31.2% of the issued share capital as enlarged by the share issue.The funds will be put to several uses, including boosting the sales and marketing teams so that the company can accelerate the roll-out of its existing products into new markets.The cash will also give the company the capability of carrying out more field trials, which will help to speed up product development and increase the number of registrations of the company's crop nutrients.Plant Impact will also be in a position to make a bigger contribution to Arysta LifeScience’s marketing efforts for BugOil, the pesticide product is has licensed from Plant Impact.