Avia Health Plunges As It Restarts Trading, Completes Placing
LONDON (Alliance News) – Avia Health Informatics PLC, which is changing its name to Cientifica PLC after converting to be an investment company, saw its shares plunge Wednesday after its expanded share issue, bolstered by a GBP326,000 placing, was readmitted to AIM.
Wednesday, it said it had completed a share placing that raised GBP326,000 and also completed the sale of its former operating business for GBP1.
“It is our intention to focus on what we can make with graphene not making graphene,” Chief Executive designate Tim Harper said.
Avia said it has identified a number of initial acquisition targets.
The funds raised in the placing will be used to fund the costs of the issue, the disposal, its Company Voluntary Arrangement, and working capital.
A CVA is an arrangement that allows a financially impaired company to continue operating while it pays off creditors over a fixed period.
“We now have the platform in place to build a substantial business based on generating revenue and profits from applications of graphene. Our model is based on having multiple suppliers and markets. We have a number of initial acquisition targets, each of which will allow us to enter a different segment of the market,” Harper said.
The shares were down 65% at 2.52 pence early Thursday, the biggest decline on AIM.
By Steve McGrath; firstname.lastname@example.org; @SteveMcGrath1
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