Anoto Group AB fell to its lowest price on record in Stockholm trading after the Swedish maker of digital pens said it needs to bring in new capital to pay short-term debt and meet its working capital requirements.
The shares fell as much as 34 percent to 0.59 krona, the lowest price since the shares were listed in 2000 and their steepest intraday decline since Feb. 4 this year. The stock declined 33 percent to 0.6 krona as of 11:51 a.m. Swedish time, with trading volume at more than seven times the daily average in the past three months, valuing the Lund, Sweden-based company at 104 million kronor ($16.1 million).
Anoto, which hasn’t posted a quarterly profit since the first quarter of 2011, plans to raise 65 million kronor in a rights offer because “current funds are not sufficient for the working capital requirements in the coming twelve months,” according to a statement published today. The money raised in the rights offer will be used to repay short-term debt and to strengthen sales and marketing functions, the company said.
“It is the board’s opinion that the rights issue together with ongoing restructuring efforts will create foundations to finance the business until profitability is achieved,” it said.
The subscription price in the offer, guaranteed to 89 percent by external investors, was set at 0.25 krona per share.
Anoto cut staff in its Swedish operations during the second quarter and has said that it is examining strategic options for its C Technologies business, including a spinoff.