Egide announced on Monday its intention to launch a capital increase to kick-start the turnaround of its US subsidiaries, which it had previously planned to sell off, an announcement that sent the hermetic enclosure manufacturer's share price tumbling.

The share, which lost up to 11% at the start of the session, was still down by more than 8% at around 9:45 a.m.

The capital increase - worth 1.9 million euros - will be carried out via the issue of 2,956,248 new shares at a unit price of 0.65 euros, representing a 26% discount to Friday's closing price.

It is this discount, coupled with the dilutive impact of the operation for existing shareholders, which weighed on the share.

A shareholder holding 1% of the capital before the operation will see his stake reduced to less than 0.78% following its completion.

It should be noted that the capital increase will be fully subscribed by Compagnie Nationale de Navigation, an entity affiliated to Patrick Molis, an entrepreneur specializing in shipping, logistics, energy, aeronautics and defense.

In parallel, Egide has also signed a bond issue agreement with Compagnie Nationale de Navigation for 750,000 euros, maturing at the end of the year.

This sum will be repayable in cash or, subject to shareholder approval, in Egide shares.

With the acquisition of a stake in Compagnie Nationale de Navigation, Patrick Molis will join the company's Board of Directors.

The approximately 2.6 million received from
a share should enable Egide to initiate the turnaround of its US subsidiaries and recruit a sales team to boost sales.

The group explains that it intends to refocus on the fast-growing defense and aerospace markets, which offer higher added value than its historical telecoms business, while implementing a plan to return to profitability.

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