Alcidion Ltd (ASX:ALC) has announced a $55 million capital raise via the issue of approximately 220 million fully paid ordinary shares. One Placement to raise $30 million is via the issue of approximately 120 million fully paid ordinary shares, issued under Alcidion?s existing Placement capacity per ASX Listing Rules 7.1; and Underwritten 1 for 10.5 accelerated non-renounceable entitlement offer to raise $25 million via the issue of approximately 100 million fully paid ordinary shares. The funds raised will be used toward Alcidion?s acquisition of Silverlake and associated costs of the transaction.
When an ASX-listed company announces a capital raising, it generally means it is selling more shares to raise money.
More often than not, the shares are sold at a discount to the company?s share price at the time to entice new and existing investors.