Cake Box shares slumped on Thursday after the company’s chief executive and his partner sold 3m shares in a placing.
The shares were sold by CEO Sukh Chamdal and his spouse Santosh Chamdal at 350p each, raising gross proceeds of around £10.5m.
The placing was conducted through an accelerated bookbuild, with Shore Capital Stockbrokers acting as sole bookrunners.
Following completion of the placing, the sellers will hold around 9.79m ordinary shares in the company, representing approximately 24.47% of the issued share capital.
At 1010 GMT, the shares were down 8.2% at 372.00p.