RC Fornax has completed a heavily discounted placing that raised £2.5 million before expenses through the issue of 37.5 million shares.

The UK-based defence consultancy, which delivers engineering solutions for critical military platforms, priced the shares at 6p each, a 39% discount on the price before the placing was announced.

RC Fornax shares are now down 80% since listing at 32.5p in January.

RC Fornax is conducting an additional retail offer to raise up to £0.5 million through the issue of up to 8.3 million shares at the same price. Results of the retail offer, which closes this morning, will be announced later today.

The company said the proceeds will support RC Fornax’s innovation strategy, particularly the development of Smart Scope, an AI-powered tool for automating compliant Statements of Work, currently at the MVP stage. RC Fornax is also developing Procure X, an intelligent marketplace that connects verified SMEs with defence buyers.

RC Fronax has made a series of disappointing announcements since listing, which is reflected in the heavy discount on the placement.

The FTSE 100 tumbled on Friday after hawkish comments by Federal Reserve officials slashed hopes of a December rate cut and sparked a global equity rout.

London’s leading index was trading down 1.8% at the time of writing, tracking a 1.6% decline in the S&P 500 and a poor overnight session for Asia. The German DAX was down 1.7% with US futures pointing to further losses in US cash trade on the open.

“Investors could be forgiven for thinking that the end of the government shutdown would bring some calm,” said Chris Beauchamp, Chief Market Analyst at IG. 

“Now it looks like we’ve just gone back to fretting about high valuations in tech stocks and the possibility that the Fed will duck the December rate cut. Neither of these things is terminal for the long-term bull market, but stocks at record highs are not best-placed to react well in the short term.”

UK investors also had to contend with more political uncertainty, with reports suggesting Rachel Reeves is now considering scrapping an increase in income tax at the upcoming budget, throwing weeks of interest-rate positioning into the air.

The Labour government promised to provide stability and growth, but has done neither. Indeed, the ongoing malaise in the UK economy is almost entirely down to its policies.

The U-turn on income tax was supposedly down to revised OBR forecasts showing the Chancellor no longer required to take measures to boost HMRC’s intake.

Starmer and Reeves are also on the ropes politically, so there may be an element of trying to please the electorate in the move.

Nonetheless, the bond market’s displeasure was on display, with 10-year gilt yields jumping 10bps to 4.54%. 

It was a bloodbath for UK stocks on Friday. Almost every FTSE 100 stock was trading negatively at the time of writing.

Land Securities was among the top fallers after reporting that underlying profit had fallen and that valuations were under pressure.

“Land Securities’ update this morning claims positive momentum amid a challenging backdrop for UK property. The company has lifted guidance for net rental income growth to 4-5% for the full year, underpinned by strong tenant demand and successful asset management in its prime retail and London office portfolios.

“However, underlying profit fell, reflecting continued asset revaluations and sector volatility. While management’s focus on cost savings and portfolio repositioning is delivering results, market headwinds from high interest rates and cautious investor sentiment should not be overlooked.”

Land Securities shares were down 4% at the time of writing.

Banks were heavily hit, with Barclays losing around 4% and Lloyds losing 3.5%

Traders banked profits in Fresnillo and Endeavour as gold prices tanked on concerns about interest rates. Fresnillo gave up 5.8% and was the FTSE 100’s top faller at the time of writing.