Anoto Plummets After Announcing Share Sale: Stockholm Mover
Anoto Group AB (ANOT), a maker of pens that transmit handwritten text into digital format, fell the most on record as it said it would raise 95 million kronor ($15.1 million) by selling new shares.
The shares slipped as much as 1.25 kronor, or 38 percent, to 2.01 kronor, the company’s biggest intraday decline since at least March 2000. Anoto fell 36 percent to 2.08 kronor as of 10:43 a.m. in Stockholm, with volumes at five times the daily average in the past three months and valuing the company at 277 million kronor.
Anoto’s board has authorized the rights offer, including setting a subscription price no higher than 1.75 kronor a share, the Lund, Sweden-based company said in a statement today. Proceeds from the sale will allow the company to “promote product development, sales and marketing activities” and to support potential acquisitions.
“The purpose of the rights issue is to provide the company with necessary additional short-term liquidity and strengthen its current balance sheet,” it said. “Recent developments have confirmed the board’s belief in several growth opportunities and the importance of a stronger presence of our market segments, such as business solutions, voting and tablets/screens.”
Anoto reported Nov. 2 a third-quarter profit of 9.48 million kronor on sales of 47 million kronor, and is scheduled to report full-year earnings on Feb. 8.
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