** Shares of welding technology provider K-Tig Ltd KTG.AX drop as much as 7.7% to A$0.240, its lowest since Aug 18
** Co to raise A$5.6 mln ($4.07 mln) through share placement at issue price of A$0.25 per share, which represents a discount of 3.8% to stock's last close Co says funds will be used to develop new partner alliances and increase market penetration
** Stock set for a third straight session of declines
** KTG has risen 15.6% this year, as of last close ($1 = 1.3748 Australian dollars)