Why the Red 5 (ASX:RED) share price is crashing 16% lower today

The Red 5 Limited (ASX: RED) share price has been one of the worst performers on the Australian share market on Friday.

In afternoon trade the gold miner’s shares are down 16% to 16 cents.

This latest decline means the Red 5 share price is down a disappointing 38% since the start of the year.

Why is the Red 5 share price crashing lower today?

Investors have been selling Red 5’s shares on Friday after it announced the completion of a $39 million institutional placement and entitlement offer.

Red 5 raised the funds via a 4-for-21 fully underwritten accelerated non renounceable entitlement offer that saw the company issue approximately 245 million shares at a 16% discount of 16 cents per new share.

Following its completion, the…