Ovostar cancels secondary share placement

Ovostar Union (OVO PW) said on Friday it cancelled plans to sell 8% of share capital (post-placement) via a private placement. The company’s board vetoed the transaction after subscription came in at a price it did not believe reflected the “fundamental value of the company and its growth prospects.” Ovostar had planned to use proceeds from the placement to partially finance its USD 50 mln investment program. Following announcement of the placement on May 23, Ovostar shares lost 10% in 1.5 sessions, but fully regained the loses on Friday after it cancelled the placement.