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Deepmatter (DMTR) shares slump 60% following £2.55m share offer announcement

By Angelique Ruzicka

10:27, 24 December 2021

Deepmatter is looking for more equity from investors
Deepmatter continues to engage with Standigm over a deal to provide its DigitalGlassware platform and data - Photo: Shutterstock

Deepmatter Group’s (DMTR) share price slumped 60% this morning after it announced a drastically discounted share offer.

The international digital chemistry data company said it was looking to raise £2.55m ($3.42m) at a price of 0.1p per new ordinary share and it would seek this investment from a small group of new professional individual investors and existing institutional shareholders.

The Bristol-based company said the money would enable it to "move forward without the need to re-evaluate its strategy and outlook." 

Open offer

The Group said it was also looking to raise £0.25m ($0.34m) from qualifying shareholders and that this would be conducted via Canaccord Genuity.

Today’s announcement follows an earlier announcement on 17 December which alerted investors that the Group was looking to raise equity.

Revise of strategy?

The deal is still subject to shareholder approval. A circular which will contain further details of the proposed fund raise and notice convening the General Meeting will be circulated to all shareholders in early 2022.


38,756.15 Price
+2.350% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00

Oil - Crude

76.26 Price
+0.540% 1D Chg, %
Long position overnight fee -0.0165%
Short position overnight fee -0.0054%
Overnight fee time 22:00 (UTC)
Spread 0.040


0.62 Price
+0.390% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 22:00 (UTC)
Spread 0.01168


15,926.00 Price
-0.050% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 1.8

The company's forecasts and execution of its strategy is dependent on the completion of the fund raise and receipt of the net proceeds.

It added: "In the event that the resolutions are not passed at the General Meeting and the fund raise is not completed the board would have to immediately re-evaluate the strategy and outlook of the group."

Standigm deal

The company separately highlighted that it continues to engage with Standigm over a deal to provide its DigitalGlassware platform and data. However, the multi-year deal is now set to be signed in 2022, which the directors said would result in revenue for 2021  being lower than expected.

Deepmatter’s share price increased slightly later in the day and at the time of writing was trading at 0.383p.

Read more: Pfizer (PFE) jumps 2% after FDA approves Covid pill

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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