Kiln plc has been advised that it cannot proceed with its £48m capital raising plans after its share price rose to 55p per share yesterday following the announcement.
The company had said it would raise funds via a placing and open offer of new shares at 47p per share.
Under UK listing rules, companies cannot place shares at a discount of more than 10% to the prevailing mid-market price.
Therefore, the price rise to 55p means the company cannot proceed with the placing.
Kiln said: "Whilst an alternative capital raising structure may be possible there can be no certainty that institutional investors will wish to participate."
It added that shareholders would be updated shortly and advised them not to take any action.
