Forgent plc (AIM: FORG) has raised £500,000 before expenses through a direct subscription with an existing high-net-worth shareholder at 0.012p per share.
The issue price represents a premium of approximately 9% to the closing bid price on 29 September 2026.
Forgent will issue 4,166,666,667 new ordinary shares, with net proceeds expected to be approximately £447,500 after expenses.
The funds will be used for operational and general working capital as the company continues to advance its Western Australian critical and precious minerals portfolio.
The subscriber will also receive one warrant for every two new shares, resulting in the issue of 2,083,333,333 warrants.
Each warrant will be exercisable at 0.020p per share for two years from admission. If exercised in full, they would provide Forgent with a further approximately £416,700 of gross proceeds, while creating additional dilution for existing shareholders.
Following admission of the subscription shares, Forgent will have 48,582,685,000 ordinary shares in issue. The new shares will therefore account for approximately 8.6% of the enlarged share capital.
Admission to AIM is expected by no later than 8am on 20 October 2026.
Chief executive James Parsons said securing capital at a premium demonstrated continued shareholder support and would extend the company’s funding runway as it progresses its Western Australian assets.
For investors, the positive feature is that Forgent has secured fresh capital without offering a discount to the prevailing market price. The trade-off is material share issuance and a sizeable warrant overhang, meaning the next question is whether the additional funding can generate sufficient project progress to offset the resulting dilution.
Investor takeaway: Forgent has raised £500,000 from an existing high-net-worth shareholder at a 9% premium to the previous closing bid price. The funding strengthens working capital, although the 4.17 billion new shares will represent around 8.6% of the enlarged share capital, with a further 2.08 billion warrants creating additional potential dilution.
