Australia's Sovereign Cloud Holdings slumps on discounted capital raise

Aucyber

01/06/2023 01:46

** Shares of Sovereign Cloud Holdings Ltd  SOV.AX  fall as
much as 9.1% to A$0.100, posting their biggest intraday pct fall
since May 19
    ** Intends to conduct an equity raising via a 1-for-1
pro-rata non-renounceable entitlement offer to raise about
A$8.49 mln ($5.76 mln)
    ** Issue price of A$0.05 per new share is at a 54.5%
discount to last close on May 31
    ** Says proceeds from the entitlement offer will be used for
working capital purposes
    ** Shares hit their lowest level since May 24 
    ** SOV stock down 24.1% YTD, as of last close 

($1 = 1.4743 Australian dollars)

 (Reporting by Echha Jain in Bengaluru)
 ((Echha.jain@thomsonreuters.com))