Why Althea, Altium, Fortescue, & Retail Food Group are dropping lower

Altium Limited (ASX:ALU) and Fortescue Metals Group Limited (ASX:FMG) shares are two of four dropping lower on Tuesday…

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It has been a disappointing day of trade for the S&P/ASX 200 Index (ASX: XJO) on Tuesday. In late morning trade the benchmark index is down 0.35% to 6,636.4 points.

Four shares that have fallen more than most today are listed below. Here's why they are dropping lower:

Althea Group Holdings Ltd (ASX: AGH)

The Althea share price is down 7% to 45.5 cents after completing a capital raising. The cannabis company has raised $6 million through an institutional placement at a 10.2% discount of 44 cents per share. It will now seek to raise a further $3 million via a share purchase plan. The proceeds will be used to accelerate its growth strategy.

Altium Limited (ASX: ALU)

The Altium share price has fallen 4% to $34.50. This follows its decision to offload its TASKING business for US$110 million on Monday in order to focus on its Altium 365 platform. This morning analysts at UBS retained their neutral rating and $36.00 price target on its shares following the news.

Fortescue Metals Group Limited (ASX: FMG)

The Fortescue share price is down 3.5% to $21.39. Investors have been selling the iron ore producer's shares after the price of the steel making ingredient pulled back overnight. According to CommSec, the spot iron ore price dropped a sizeable 3.9% to US$154.50 a tonne. However, despite this decline, it is still up materially over the last few weeks.

Retail Food Group Limited (ASX: RFG)

The Retail Food Group share price has crashed 23% lower to 7 cents. The catalyst for this was news that the ACCC has commenced proceedings in the Federal Court against Retail Food Group and five of its related entities. The ACCC alleges the food and beverage franchise company engaged in unconscionable conduct and made false or misleading representations in its dealings with franchisees. This is in breach of the Australian Consumer Law.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Altium. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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