Shares in fitness tracker Cloudtag plunged 10 percent on Tuesday, after an update on its loan conversion from a major backer.
Cloudtag announced the drawdown of the remainder of Trance 2 notes, after initially issuing £1 million to L1 Capital to receive net proceeds of £0.85 million.
This comes after the company issued L1 Capital with 19.2 million Cloudtag shares, after the former chose to convert £1.15 million of its tranche 1 loan notes at 6p each.
The company said in a statement that, “Under the terms of the Notes, 2 business days’ notice is required prior to the funds being due to the Company following which the Notes will be issued to L1. A further announcement will be made when the funds are received and the Notes issued.”
Shares in the fitness tracker were volatile in December, soaring up and down and eventually being suspended from trading for three days.
Investors were anticipating a major announcement, which came in the form of a statement from he company about the delivery of its next round of products, ahead of a major rebrand. The product will be officially launched at the CES electronics show in Las Vegas later this month.
CloudTag shares rose over 30 percent ahead of the major announcement, before trading was suspended the next day.
Shares then continued to rise the agreement with L1 Capital was initially announced, raising around £900,000 for the business.
Cloudtag (LON:CTAG) shares are currently down 5.51 percent at 8.74 (1020GMT).
Cloudtag are a fitness tracking business, owning the CloudTag Track and its smart device application range which provides personalised weight-loss and fitness programs based on the latest clinical-grade, wearable fitness monitoring technology.
The CloudTag Track device uses sensing and signal processing technology to generate clinical-grade electrocardiograms.