Velocity Composites PLC on Wednesday said it plans to raise up to £6.7 million through a placing, subscription and retail offer.

The supplier of composite material kits to aerospace and other high-performance manufacturers announced a placing and subscription of 15.5 million shares to raise £6.2 million. It also plans to raise £500,000 through a retail offer of 1.3 million shares.

The issue price is 40 pence per share, representing a 13% discount to the market price of 46.0p on Tuesday.

Shares in Velocity were down 13% to 40.00p in London on Wednesday morning.

Velocity said the proceeds of the fundraising will be used for capital expenditure and working capital for expansion.

Chair Andy Beaden said: ‘This well subscribed fundraise is a key step forward in the development of Velocity into a substantial business. The funds enable us to grow faster and add additional skilled staff in the aerospace composites market.’

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