Shares in Mindflair sunk by as much as 10% in early trade on Tuesday after the AI investor raised £490k in a share issue at a discount to its trading price.

The AIM-listed business said it raised the capital to help pay off £1.2m in loans that were raised in December 2022. Following the raise, the company’s outstanding debt has been brought down to around £800k.

The issue of 81.7m new shares at 0.6p/share represents a discount of around 12% compared to yesterday’s closing price. The company’s stock has more than halved in value since its peak in July.

Nicholas Lee, Director of Mindflair, said: “We believe that the placing and [debt] re-profile is a good solution for all parties and provides the company with additional flexibility, notwithstanding the proximity of potential realisations from our portfolio.

“We firmly believe that we are at a very exciting time in the development of the company.”

Mindflair, which specialises in European enterprise AI software firms, has eight companies in its second Sure Vally Ventures fund, SVV2, spanning a number of sectors including education, e-commerce, transport, and robotics. The fund is corner-stoned by the British Business Bank.

SVV has partnered with Imperial College in London to help AI researchers commercialise their research and with NVIDIA to present an AI masterclass for researchers and venture capitalists.

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