(CercleFinance.com) – Egide announced on Monday its intention to launch a capital increase intended to initiate the recovery of its American subsidiaries which it had so far planned to sell, an announcement which caused the stock of the box manufacturer to fall hermetic.
The action, which lost up to 11% at the very start of the session, was still down more than 8% around 9:45 a.m.
The capital increase – for an amount of 1.9 million euros – will be carried out via the issue of 2,956,248 new shares at a unit price of 0.65 euro, representing a discount of 26% compared to the Friday’s closing price.
It is this discount, coupled with the dilutive impact of the operation for the current shareholders, which weighed on the title.
A shareholder holding 1% of the capital before the operation will see his participation reduced to less than 0.78% following its finalization.
It should be noted that the capital increase will be entirely subscribed by the Compagnie Nationale de Navigation, an entity affiliated with Patrick Molis, an entrepreneur specializing in maritime transport, logistics, energy, aeronautics and defence.
At the same time, Egide also entered into a bond issue contract with the Compagnie Nationale de Navigation for an amount of 750,000 euros, a loan which will mature at the end of the year.
This amount will be repayable in cash or, subject to shareholder approval, in Egide shares.
With the entry into the capital of the Compagnie Nationale de Navigation, Patrick Molis will join the board of directors of the company.
The approximately 2.6 million received from s
apart should enable Egide to initiate the recovery of its American subsidiaries and to recruit a sales team in order to boost sales.
The group explains that it wants to refocus on the defense and aerospace markets, which are growing rapidly and have higher added value than its historic telecoms activity, while implementing a plan to return to profitability.