ECS Botanics (ASX:ECS) share price slumps 10% on capital raising efforts

ECS Botanics Holdings Ltd (ASX: ECS) shares have slumped in late-afternoon trade following an announcement regarding a capital raise. At the close of trade, the ECS Botanics share price is down 10% at 5.4 cents.

Let’s take a look at what is driving the agribusiness and hemp food company’s share price down.

Why is the ECS Botanics share price falling?

The ECS share price falls as investors indicate displeasure with the company’s latest update that will perhaps further dilute shareholdings.

In today’s release, ECS advised that it has received strong commitments to complete a $4 million share placement. Offered at 5 cents apiece,…