Enteq shares plummet 42% after discounted placing, subscription

The company, known for its SABER (Steer-At-Bit Enteq Rotary Tool) directional drilling technology, raised £1.5m by way of the issue of up to 30m new ordinary shares – comprised of a placing of 24.6m shares and a subscription of 5.4m.

The proceeds will allow Enteq to expand the current fleet of SABER tools to 10, provide demonstrations to prospective customers and for field-trials and provide additional working capital support and to strengthen the balance sheet.

However, the fundraising happened at an issue price of just 5.0p per share, compared with Tuesday's closing price of 9.0p. Accordingly, the share price had dropped by 42% by 0907 BST to 5.22p.

In addition to the placing and subscription, Enteq announced a retail offer to raise a further £0.5m through the issue of 10m shares, also at 5p each.

Looking ahead, the company said that future funding may need to be sourced, either from debt, industry partnerships or technology licences.