Wey Education has launched a share issue to raise £5m to help fund an acquisition.
It has agreed to acquire complementary education business Target for a up to £2.17m in cash.
New shares will be issued via a placing at 22p each.
"Having recently announced our first annual profit, the placing will provide the group with funds to expand its marketing, domestically and internationally, pursue our adoption of artificial intelligence within our teaching methodology as well as providing working capital for growth," executive chairman David Massie said.
At 8:23am: (LON:WEY) Wey Education Plc Ord 1p share price was -4p at 29p