Cantono wants to gain shareholder permission to issue more shares.
The data centre operator needs to increase its share capital to do this. The cash is required to finance capital expenditure and secure power for its data centres. Management is talking to potential investors about this cash raising.
Cantono shares slumped 5.5p to 9.5p each on the announcement, valuing the company at £2.76m. Cantono wants to raise £10m so it will be a highly dilutive share issue.
The shares are trading below their 20p nominal value and a capital reorganisation will reduce this nominal value to 1p a share.
The general meeting will be held on 29 October 2008.
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