Trakm8's shares fall after £2.1m placing to reduce debt, provide working capital

Shares in Trakm8 Holdings are down almost 9% after it raised about £2.1m to reduce debt and provide working capital to support day-to-day operations.

The telematics and data specialist's placing was of 3.23m shares at 65p each, with certain directors, senior management and other investors participating.

"Today's capital raising reduces debt whilst providing working capital to support day to day operations," said executive chairman John Watkins.

"Together with our existing bank facilities, the group is funded for the future," he added.

"With this strengthened financial position, we expect to take advantage of the significant pipeline of new potential orders and exploit the potential of our new products, in which we have invested."

Trakm8 added that it expected to improve its financial performance in full-year 2017/18.

At 13:02 GMT, shares in AIM-listed Trakm8 were down 8.92% to 71.5p each.