The Douugh Ltd (ASX: DOU) share price is nosediving during Friday afternoon. This comes after the financial wellness app provider released its share purchase plan (SPP) offer booklet to investors.
At the time of writing, the Douugh share price is 7.1 cents, down 8.97%. It has fallen by 15% in the past week.
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Share purchase plan details
ASX investors are selling Douugh shares after the company invited retail shareholders to participate in its SPP.
Following the successful $8 million placement, Douugh has extended its offer to eligible shareholders. Under the SPP, investors can apply to buy a parcel of shares at a price of 7.2 cents.
The same terms offered in the placement represent a discount of 13.2% on the closing price on 1 December (to be eligible for the SPP). This is also an 18% discount to the volume-weighted average Douugh share price over the 5 days before the company announced the SPP.
Investors can apply for a minimum application amount of $2,000 up to a maximum application amount of $30,000.
The company is seeking to raise $2.5 million through the SPP. However, Douugh may scale this back or increase it depending on the total value of the applications.
Together with the placement, Douugh aims to capitalise on the strong momentum experienced since August 2021. Douugh will use the funds to accelerate user and revenue growth by investing in research and development as well as marketing initiatives.
The closing date for the SPP is 23 December. The new Douugh shares will be issued on 4 January 2022. They will be tradeable from the following day.
Douugh share price snapshot
Over the past 12 months, the Douugh share price has plummeted in value by about 70%. Year-to-date has been just as disappointing, down by almost 60% after investor sentiment waned.
Based on today's price, Douugh commands a market capitalisation of $32.21 million with approximately 453.71 million shares on issue.
