A day after selling a rare Penny Red stamp for £495,000, Stanley Gibbons has seen its shares on offer as investors bailed out of the business.
The rare stamp and coin seller has fallen 42% to 21.5p after it gave more details of a proposed fundraising. It said it was close to concluding a deal to raise around £13m, but revealed that new shares would be offered at just 10p each.
Last month Stanley Gibbons announced the fundraising plans alongside its third profit warning in less than a year, and news that its auditors had quit.
The proceeds of the equity issue will be used to pay off its £6m overdraft as part of a restructuring of its £22.6m debt, as well as hiring consultants to help intergrate art dealer Mallett into its existing operations.
The 100 year old company has suffered over the past year or so - as have its shares - as the collectibles market declined and a series of acquisitions stretched its resources.
