Electric Guitar PLC (LSE: ELEG) has announced the successful completion of a £775,000 fundraising (before expenses) through a placing of 968,750,000 new ordinary shares at an issue price of 0.08 pence per share. The move sent shares down 26% in Tuesday trading.
Placing Overview
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Issue Price: 0.08p per share, representing an 11.11% discount to the closing mid-market price of 0.09p on 17 June 2025.
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Shares Issued: 968,750,000 new Ordinary Shares
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Proceeds: £775,000 gross / approximately £730,000 net
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Share Dilution: Placing Shares will account for 44.66% of the Company’s enlarged issued share capital.
The placing was executed through Novum Securities Limited under a non-underwritten placing agreement, utilising the company’s existing share authorities to issue shares on a non-pre-emptive basis. Admission of the new shares to trading on AIM remains conditional.
Retail Shareholder Exclusion
While the placing was open to existing and new institutional investors, retail shareholders were excluded. The board cited the scale of the raise and the cost of a retail offer as reasons for the decision but noted this position may be reassessed for future fundraising.
The new shares will be fully paid and rank pari passu with existing ordinary shares upon admission.
Shares in Electric Guitar PLC fell 26% following the announcement, reflecting dilution concerns, despite the strategic rationale behind the raise.
Significant shareholdings
As a result of the issue of the Placing Shares and the Fee Shares, from Second Admission, the Company is aware of the following revised interests of Significant Shareholders (as defined in the AIM Rules) in the Company:
|
Shareholder |
Number of ordinary shares held from Second Admission |
Previously disclosed position |
Percentage of share capital held Second from Admission |
|
Mayford |
537,500,000 |
29.16% |
24.36% |
|
Sanderson Capital |
354,046,025 |
13.88% |
16.05% |
|
Grahame Cook |
97,314,626 |
8.11% |
4.41% |
Contacts:
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