Defence Holdings (LON: ALRT) plans to raise up to £4 million through a discounted share placing to accelerate growth and invest in new opportunities across the defence technology sector.
The fundraising will be conducted at 1p per share, a 24.8% discount to the previous closing price of 1.33p, with institutional investors participating through an accelerated bookbuild. Broker Fortified Securities also has the option to raise up to an additional £1 million from eligible investors.
The company said the proceeds will strengthen working capital and fund strategic partnerships, joint ventures and contract delivery as it executes its recently announced operating model and growth strategy.
Alongside the fundraising, Defence Holdings confirmed the indefinite suspension of its at-the-market (ATM) share issuance programme. The facility raised a total of £992,557 before being halted, including a final £114,590 since the last update.
No further shares will be issued under the ATM while the suspension remains in place.Chief executive Andrew Roughan said the fundraising comes at a pivotal time for the defence industry, with increasing demand for agile and innovative solutions amid growing national security challenges.
He added that the company is close to announcing at least one new contract award, which management believes will demonstrate its progress in establishing itself within the defence sector.
Following completion of the placing and broker offer, Defence Holdings will announce the final amount raised and the number of new shares to be admitted to trading.
