Cobham (CBHMF) shares were hit Monday after it said it is under investigation over its handling of inside information ahead of a crucial capital raising.
The defence contractor said it received notification from the Financial Conduct Authority Friday and that the investigation relates to its April 2016 cash call.
Cobham stock fell by nearly 2% in response to the announcement, to change hands at 126.4 pence, and taking its year-to-date loss to 22.1%.
Cobham, which is an F-35 partner of Lockheed (LMT) and is also partnered with Boeing (BA) on the development of the KC-46 refuelling tanker, has tapped investors for cash twice in the last twelve months.
In March it announced a £500 million ($625 million) equity cash call as part of an effort to bolster its balance sheet and to reassure customers that it will be able to deliver on its order book.
This followed a period in which it issued no less than five profit warnings, in a little over a year, and also tapped investors for another £500 million.
The original cash call is the one called into question question by the FCA, while the bulk of Cobham's recent financial troubles have stemmed from its involvement as a partner in Boeing's troubled KC-46 program.
For 2016, Cobham reported an £800 million write down in order to cover the costs of additional work on KC-46 and to set the balance sheet value of past acquisitions and problematic contracts straight.
