{"id":123838,"title":"Electric Guitar PLC Raises £775,000 via Oversubscribed Placing; Shares Drop 26%","publisher":"Share Talk","author":"sharetalk","published":"2025-06-18T09:53:24+00:00","modified":"2025-06-18T09:59:09+00:00","canonical_url":"https://www.share-talk.com/electric-guitar-plc-raises-775000-via-oversubscribed-placing-shares-drop-26/","markdown_url":"https://www.share-talk.com/electric-guitar-plc-raises-775000-via-oversubscribed-placing-shares-drop-26.md","json_url":"https://www.share-talk.com/electric-guitar-plc-raises-775000-via-oversubscribed-placing-shares-drop-26.json","category":"B2B","categories":["B2B","Business & Support Services","Technology","Technology, Media & Telecoms"],"tags":["3radical","data","designing products","driving revenues","Electric Guitar","Electric Guitar PLC","ELEG","optimising communications","Richard Horwood","Sarfraz Munshi","Service platform","software","ultimately"],"featured_image":"https://i0.wp.com/www.share-talk.com/wp-content/uploads/2025/06/Electric-Guitar.webp?fit=750%2C406&quality=80&ssl=1","format":"news","language":"en-GB","content":"**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.\n\n### **Placing Overview**\n\n-\n**Issue Price**: 0.08p per share, representing an **11.11% discount** to the closing mid-market price of 0.09p on 17 June 2025.\n\n-\n**Shares Issued**: 968,750,000 new Ordinary Shares\n\n-\n**Proceeds**: £775,000 gross / approximately **£730,000 net**\n\n-\n**Share Dilution**: Placing Shares will account for **44.66%** of the Company’s enlarged issued share capital.\n\nThe 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**.\n\n### **Retail Shareholder Exclusion**\n\nWhile 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**.\n\nThe new shares will be **fully paid and rank pari passu** with existing ordinary shares upon admission.\n\nShares in Electric Guitar PLC fell **26%** following the announcement, reflecting dilution concerns, despite the strategic rationale behind the raise.\n\n### Significant shareholdings\n\nAs 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:\n\n|   |   |   |   |\n| --- | --- | --- | --- |\n| Shareholder | Number of ordinary shares held from Second Admission | Previously disclosed position | Percentage of share capital held Second from Admission |\n| Mayford | 537,500,000 | 29.16% | 24.36% |\n| Sanderson Capital | 354,046,025 | 13.88% | 16.05% |\n| Grahame Cook | 97,314,626 | 8.11% | 4.41% |\n\nContacts:\n\n|   |   |\n| --- | --- |\n| Electric Guitar PLC Richard Horwood   | [info@electricguitarplc.com](mailto:info@electricguitarplc.com) |"}