DG Innovate announces placing for 'immediate needs'

(Sharecast News) - Shares in DG Innovate dropped on Tuesday after the mobility and energy storage technology company announced a share placing to raise £500,000. The placing of 625m shares came at a price of 0.08p each to provide ongoing working capital, ensuring the company has "sufficient funds for its immediate needs" until early February 2025, the company.

The stock has more than halved since the start of the year, falling from a 52-week high of 0.26p in January to just 0.095p as of Monday's close. Shares were down a further 10.5% at 0.085p by 1344 GMT.

"Accordingly, in conjunction with its commercial activities, the company will continue to seek further funding and is currently in preliminary discussions with various parties regarding other funding solutions," the company said in a statement.

Interim results from DG Innovate in September showed that the company recorded a pre-tax loss of £3.04m in the first half of 2024, down from a loss of £1.91m the year before.