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LONDON - RC Fornax plc (AIM:RCFX), a UK-based military engineering consultancy, announced Friday a proposed fundraising to raise £2.75 million through a placing and retail offer at 6 pence per share.
The company plans to raise a minimum of £2.25 million through a placing with institutional investors and management, with an additional £0.5 million potentially coming from a retail offer. The issue price represents a 38.5% discount to Thursday's closing price of 9.75 pence.
According to the announcement, the net proceeds will be used to develop the company's Procure X Marketplace, a self-serve platform designed to connect verified small and medium enterprises with defence buyers, and to provide working capital for potential upcoming contract wins.
RC Fornax's management team, including co-founders Paul Reeves, Daniel Clark, Rob Shepherd, Nigel Harper and Mark Fahy, intend to participate in the placing with a combined investment of £156,800.
The fundraising comes after RC Fornax reported it expects revenue of £4.1 million for FY25, down from £6.5 million the previous year, with a loss before tax of £1.5 million compared to a £0.8 million profit in FY24. The company held £1 million in cash as of August 31, 2025.
The company stated it has seen increased customer engagement following the publication of the Strategic Defence Review, generating more growth opportunities and participating in seven procurement frameworks that have created over 20 new bid opportunities since April 2025.
The fundraising is conditional upon shareholder approval at a general meeting scheduled for December 5, 2025, with admission of the new shares expected around December 8, 2025.
Strand Hanson Limited is acting as nominated adviser, while Cavendish Capital Markets Limited is serving as sole bookrunner for the placing.
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