Iodine producer Iofina confirmed that it was raising funds to pay down debt and support the construction of a new plant, but the company conceded that the equity placing would be offered at a discount given the recent sustained rise in the stock price.
The company said it knew of no reason for the sustained rise in its share price other than than its recently reported positive results and the reported strengthening in the iodine market.
The company confirmed that it was currently in the advanced stages of an equity fundraising for at least £5m that would allow it to pay down some of its debt and progress its plans to construct IO#8.
But due to the recent rise in the share price, it was likely that the fundraising would be completed at a discount to the market price per ordinary share in Iofina.
'The directors of the company will consider the impact of any fundraising on shareholders when deciding whether or not to proceed,' the company said.
At 9:04am: (LON:IOF) Iofina PLC share price was -5.85p at 26.15p