The market is bidding the Firefinch Ltd (ASX: FFX) share price lower after the company announced the completion of its heavily oversubscribed share purchase plan.
The company initially aimed to raise $25 million through the offering. However, it will instead accept all subscriptions – bringing in a total of approximately $51.36 million.
At the time of writing, the Firefinch share price is 64.2 cents, 8.94% lower than its previous close.
Let's take a closer look at today's news from the gold miner and lithium developer.
Firefinch share price tumbles on Thursday
Firefinch shareholders turned up in droves to take advantage of a share purchase plan offering Firefinch shares for 58 cents apiece.
The share purchase plan let existing shareholders bolster their portfolio by adding up to $30,000 worth of additional Firefinch shares without paying brokerage or transaction costs.
The 58-cent price tag represents a 17.7% discount on the Firefinch share price at yesterday's close.
Though, when the capital raise was announced, it represented a 10.8% discount on the 5-day volume average weighted price.
According to the company's managing director Dr Michael Anderson, approximately 40% of shareholders took up the opportunity.
"The demand reflects the strong outlook for the company and its terrific projects – Morila and Goulamina," he said.
As a result, the company will issue more than 88.5 million new shares to subscribers tomorrow.
The funds raised will go towards ramp-up and development activities at the Morila Gold Project, the continuation of exploration, resource development, and expansion drilling at the Morila Super Pit, and the restart of drilling at the Goulamina Lithium Project. Any additional funds will become general working capital.
The Firefinch share price fell 6% the day the company announced the share purchase plan. However, it has gained 9% since then.
The company's share price is also currently 240% higher than it was at the start of 2021.
