Aurrigo International announces discounted placing, shares tumble

Aurrigo International tanked on Wednesday after the AIM-listed provider of transport technology solutions announced plans to raise £3.5m in a discounted placing.

The company said it was looking to place a minimum of 3.5m new ordinary shares at 100p each, which is a discount of around 32% to the closing share price on Tuesday.

The proceeds will be used to progress new partnerships with CAG, IAG and UPS, and to service anticipated growth in new and existing customer and product demand.

They will also be used to continue the company's product and technology development roadmap, to capitalise on the opportunities in its markets and accelerate its future growth, and to provide ongoing working capital funding, it said.

Aurrigo also announced that Lewis Girdwood will become director of the aviation technology division following completion of the fundraise.

Girdwood will remain on the board as an executive director, rather than as a non-executive director and will relinquish his role as chair of the Audit Committee.

Most recently, he served as chief financial officer at Esken Limited and prior to that held senior management positions at IAG Cargo Limited and easyJet.

"As such, the board regards Lewis as ideally equipped to lead the aviation technology division as the company looks to capitalise on the excellent recent progress and to deliver valuable growth for shareholders," it said.