The Alcidion Group Ltd (ASX: ALC) share price is deep in the red today after exiting its trading halt this morning.
Shares in the company opened around 14% lower and have remained at that level, trading at 27.5 cents apiece at the time of writing.
Let's take a look at why the Alcidion share price is struggling today?
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What is Alcidion up to?
Alcidion returns to the market today after a capital raise to fund an acquisition. As reported earlier this week, the healthcare technology company is taking over UK company Silverlink PCS Software Limited.
The company has now completed the share placement and the institutional part of the entitlement offer.
The capital raise included a $30 million share placement of 120 million new shares, while the institutional entitlement offer raised $13.4 million via the issue of 53 million new shares.
Shares were offered at 25 cents apiece. That's a 21.9% discount on the final closing price before the raise of 32 cents.
Managing director Kate Quirke has taken up 1 million shares, worth $250,000, as part of the institutional entitlement offer.
The retail entitlement offer will start next week.
Management commentary
Commenting on the capital raise, Quirke said:
We are pleased to have successfully completed the institutional placement and accelerated institutional component of the non-renounceable entitlement offer.
We are grateful for the continued support of our key existing investors, and we welcome a number of new shareholders onto our register.
Alcidion share price snapshot
Investors have recorded gains of more than 48% in 2021. In the past 12 months, the Alcidion share price surged by roughly 37%.
Alcidion reached a yearly high of 49 cents in June, while January delivered the yearly low of 18 cents.
The company's total market capitalisation is about $288 million at the time of writing.
