The share price of Oslo listed Eitzen Chemical fell more than 11% today as the company announced it was planning a private share placement designed to boost liquidity by $45m to $55m.

Eitzen Chemical reported that first quarter time charter rates were 8% above those of the final three months of 2010 but this failed to hold the share price which has dropped more than 50% since the start of this year.

Axel Eitzen
The company revealed its cash balance at the end of the first quarter was $57m which is $15m down on the end of 2010.

“Although