At the close of trading for the week, Envirosuite shares were down 2.22%, swapping hands at 22 cents a piece.
Trading was paused while the environmental management solutions company conducted a capital raise to drive growth in its water treatment technology segment.
What's happening with Envirosuite?
The catalyst for the Envirosuite share price drop today may have been the capital raise, which dilutes the value of each share. A total of 52.3 million new shares were placed on the market at 20 cents a piece.
The shares were offered at a 15% discount on a share price high of 23.5 cents on 25 November.
As a result, Envirosuite achieved its goal of raising $10.5 million and hailed the capital raise a success.
Furthermore, the company will use proceeds of the capital raise to invest in growing the direct sales in its EVS Water product. This includes growing the sales team and forming new partnerships to achieve sales success.
EVS Water is a 3-product platform that links artificial intelligence with leading water modelling approaches. It helps companies reduce their operational risk and expenses while remaining compliant.
Envirosuite chief executive officer Jason Cooper said:
This capital raising is about growth. That we have been able to raise capital in a highly sought-after placement at a materially superior price than the previous tranche of growth funding is indicative of the trajectory of the business and investors' appreciation of the opportunity that lies before us.
Envirosuite share price snapshot
Envirosuite shares have grown around 17% in the past 12 months. To put this in perspective, the S&P/ASX 200 Index (ASX: XJO) has climbed around 9% in that time. The Envirosuite share price is down 6.4% over the past month.