Regional REIT says discounted equity issue on the cards, shares tank

12th Mar 2024 13:49

(Sharecast News) - Regional REIT tanked on Tuesday as it confirmed that a heavily-discounted equity issue could be on the cards.

Responding to press speculation about the possibility of an equity capital raise of around £75m, the company said "significant preparatory work has been undertaken to date in respect of both the debt and equity options, which remain under active consideration".

If an equity issue does occur, Regional REIT expects it to be "at a material discount" to the current share price.

"The company continues to consider its options and a further announcement will be made when appropriate," it said.

It had already announced that it was exploring a range of refinancing options, including debt and/or equity, in respect of the existing £50m retail bond that matures in August 2024.

At 1350 GMT, the shares were down 33% at 13.50p.