NetBenefit, the Internet names and domain hosting outfit, has denied a newspaper article which says that it needs to raise extra cash to support the business.

Today's Independent reported: "According to gossips, NetBenefit...is in need of extra funding...[and] is looking to raise about £2.5m via a deeply discounted rights issue."

It said: "The Board of NetBenefit notes today's decline in it its share price and attributes it to recent misleading press speculation, which suggests that NetBenefit is seeking extra funding via a deeply discounted rights issue.

"The Board would like to state that the current financial resources of the company are completely sufficient for NetBenefit to pursue its business strategy and that there are no plans for a fundraising exercise at this time," it said.

By late afternoon shares in NetBenefit had bounced back to within a smidgen of its opening price rising to 12.25p - down just 0.75p (5.77 per cent). ®