Shares of Dye & Durham were trading lower on Thursday morning as the Canadian company revealed plans to raise $126 million through a bought deal offering of its shares. The funds will be used to pay down debts and improve the company's financial position.
Lower Share Prices
As of 9:50 a.m. ET, Dye & Durham shares were down 3.2% to C$12.70. This decline reflects the market's reaction to the company's announcement.
New Issue of Shares
Dye & Durham, a leading provider of practice management solutions in Canada, announced on Wednesday that it has entered into an agreement with a syndicate of underwriters. The agreement involves the issuance of 10.4 million shares at a price of C$12.10 per share. Additionally, the underwriters have been granted the option to purchase an extra 15% of the total common shares offered.
Struggling Share Performance
Over the past year, Dye & Durham shares have faced significant pressure, with a decline of nearly 36%. So far in 2023, they have experienced an 11% decrease.
Dye & Durham has stated that this offering is part of its broader strategy to reduce its business debts and strengthen its financial position.