Drone Volt announced on Thursday its intention to launch a capital increase of 2.3 million euros, as the company seeks to strengthen its financial position in response to market growth.

However, this announcement caused the share price of the aeronautical manufacturer specializing in professional civil drones to plunge, dropping more than 9% in late morning trading.

This brings the decline in the share price to over 31% since the start of the year.

The subscription price of 0.0065 euros per share represents a discount of 15.5% to yesterday's closing share price.

The subscription period will run from July 17 to July 26, on the basis of one share entitling the holder to one preferential subscription right, with five preferential subscription rights entitling the holder to subscribe to one new share.

As an indication, a shareholder holding 1% of the capital prior to the capital increase and not subscribing to it will find himself diluted to 0.83% following the fund-raising.

'This operation was expected, as the 2024 financing requirement, after the capital increase at the beginning of the year, was estimated by us at over five million euros', analysts at Invest Securities pointed out this morning.

Despite the significant improvement in operating performance, a new operation will be necessary between now and the end of the year", warned the brokerage firm.

Note that the amount of the capital increase could be increased to 2.6 million euros if the extension clause is exercised in full.

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