(CercleFinance.com) – Archos announced on Monday the launch of its capital increase of one million euros, an operation which comes as the French group is finalizing its transformation.
This announcement, however, caused the stock to plunge by more than 7% on Monday morning, which placed it among the biggest declines on the Paris market at the start of the week.
The issue of new shares with maintenance of shareholders’ preferential subscription rights (DPS) will be carried out on the basis of a unit price of 0.043 euros per share, with a parity established at 10 new shares for every 15 held.
The management team committed to more than half (51.7%) of the capital increase, with the desire to form a ‘hard core’ of shareholders, to put an end to alternative financing and to stop dilution.
The subscription price, however, shows a discount of 38.7% compared to the last listed price, with a dilutive effect which promises to be significant.
A shareholder who held 1% of the capital before the fundraising and did not subscribe to the latter would thus see his participation reduced to 0.6%.
The capital increase comes as Archos says it is now focused on its strategic plan, centered around its consumer division (new Android tablets), its professional and defense division (Logic Instrument and Elexo) and a health division focused on four ‘medtechs’.
With the end of the use of OCA and dilutive instruments, the group plans to reach 40 million euros in turnover as well as a profitable Ebitda in 2024, before exceeding 50 million turnover in 2025 while improving significantly its profitability.
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