Shares of Edinburgh-based Frontier IP, an AIM-listed specialist in commercialising intellectual property, fell 9% on Tuesday after it sold 4.24 million new ordinary shares in the firm to raise £2.33 million.

Frontier said it intends to use the proceeds to “support the ongoing working capital needs of the business, including to increase headcount to increase Frontier’s capacity to provide commercialisation and development services for its portfolio companies” and to “flex the company’s business model to include both bridge funding and direct participation in investment rounds for portfolio companies.”

In a stock exchange statement, Frontier said: “Frontier IP Group plc, a specialist in commercialising intellectual property, is pleased to confirm, further to the announcements made yesterday, the successful completion of the capital raising at an issue price of 55 pence per share.

“The placing and PrimaryBid Offer were comfortably oversubscribed and, as a result, in aggregate comprise of the maximum available number of 4,243,140 new ordinary shares, raising gross proceeds of approximately £2.33 million for the company.

“The issue price represents a 14.1 per cent. discount to the closing middle market price of 64 pence on 17 July 2020, being the latest practicable trading day prior to the announcement of the capital raising.”

Frontier IP CEO Neil Crabb said: “The group and its portfolio have made highly encouraging progress over the past year, rising to meet the opportunities and challenges presented by COVID-19.

“Several companies are now at important inflexion points in their development, having achieved significant commercial and technical advances.

“This fundraising gives us the wherewithal to respond flexibly and nimbly to the opportunities now emerging.

“I’d very much like to thank our shareholders, both new and existing, for their support.”