Yak Communications ( YAKC) sagged 18% Tuesday after the little Toronto telco rolled out a financing plan that will bring it as much as $24 million.

The company, which offers long-distance phone service to residential and business customers, agreed to sell $18 million of stock in a private placement. The placement with what Yak called "institutional and accredited investors" also includes up to $6 million worth of six-year stock purchase warrants. Yak said it would use the cash for acquisitions and to roll out its broadband telephone plan.

The company will issue 1.47 million common shares and 367,600 warrants in the offering. The shares cost $12.25 apiece, and the warrants are exercisable at $17.

On Tuesday, the stock slipped $2.71 to $12.71. Even so, Yak shares are up more than 25% in 2004 and nearly 400% on a year ago.