Appen shares fall on $50m capital raise
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The news: Appen shares fell at market open on the ASX after the data services firm announced that it had completed an institutional placement, announced on Friday, raising $50 million to fund generative artificial intelligence opportunities.
The numbers: Appen shares were down 2.3% to $2.12, having climbed nearly 240% since January.
The placement shares were issued at $1.92 per share, representing a 6.9% discount to the volume-weighted average price and an 11.5% discount to its last close.
The context: Appen said the placement was "strongly supported" by Appen's existing shareholders and new investors.
On Friday, Appen also announced that it was also undertaking a share purchase plan (SPP), targeting a $5 million raise.
Existing eligible shareholders based in Australia or New Zealand will be able to apply for up to $30,000 worth of new Appen shares at $1.92 per share. The SPP is due to open on 18 October and close on 1 November.
What they said: "The strong support for this placement is reflective of our return to profitability on an underlying EBITDA and underlying cash EBITDA basis," Appen CEO and managing director Ryan Kolln said.
"It also highlights investor confidence in our growth potential as our external environment displays continuous signs of improvement, particularly from generative AI related opportunities."
The source: ASX announcement
