Spanish regulator approves issuance of 41 million shares of Dogi

The Spanish National Securities Market Commission (CNMV) has

approved the issuance of 40,800,015 new shares of Dogi corresponding to a capital increase in cash with preferential subscription rights, amounting to 2.61 million euros.

As informed by the regulator, on Thursday the preferential subscription period will start and in case of unsubscribed shares remaining, another period will open for those interested in subscribing the additional shares.

If there are any residual shares upon completion of this second period, they will be awarded on a discretionary basis to "those qualified, according to criteria of quality, reliability and stability of investment", further explained the CNMV in a note.

As highlighted by Dogi, the capital enhancement price tag - 0.064 euros per share - implies a "very significant" discount (95.37 percent according to estimates by Europa Press) compared to the closing price of the stock on the day before the news broke: 1.382 euros per share.

The operation is framed within the refinancing plan for Dogi led by Sherpa Capital, as the investment group has already spent 3.8 million euros in the denim manufacturer.

Following the news, shares at Dogi rocketed 12.8 percent to 1.56 euros apiece, topping the winners team in Madrid. It should be noted however, that the stock still has long to go, having fallen more than 76 percent in the year to date.