What's that old adage, something about raising new cash when you can, not when it's needed. Not getting that right can be seriously damaging to a company's share price, and to investors' financial wealth. Electronics components and energy efficiency kit minnow APC Technology (APC:AIM) has tapped investors for fresh cash four times in 20-months.

The latest comes today, it's a working capital cash call looking for £1.1 million of fresh funding priced at 8p per share. Yesterday's (Monday) close was 10p, and the stock has slumped more than 16% today to 8.38p.

When              How much?       Placing price           Discount

Dec 2014        £2.075m             20p                           17.5%

Feb 2015        £1.5m                  22p                            4.3%

Feb 2016        £1.3m                   6p                             26.2%

Aug 2016       £1.1m                    8p                             20%

Notice how the discount to get the cash calls away started reasonably wide, narrowed significantly, only to widen right out again. This cannot be good for the business, almost constantly tapping away at shareholders for a bit more here, and bit extra there, but never seemingly getting enough to last long.

It's been disastrous for the share price, as the chart shows.


The company continues to talk up the future, even so.

'We are seeing real traction through contract wins and a more robust order book across the business. I am confident that these funds, with the implementation of the actions we took following our operational review, will help to deliver a platform for profitable growth,' states chief executive Richard Hodgson today.

It's former broker, Cantor Fitzgerald, by and large agrees although it has pulled its forecasts and target price (under review), although that may be as much due to it being ditched by the company in favour of a new nomad in Stockdale.

Still, the immediate future appears about as clear as mud.

How long ago the excitement of its energy efficiency contracts with Morrisons (MRW) and Sainsbury (SBRY) seems now.

APC Minimise Morrisons contract

Issue Date: 02 Aug 2016