Struggling mobile virtual network operator The People’s Operator PLC (LON:TPOP) has unveiled plans to raise yet another load of cash in a bid to stave off insolvency.
The company has burnt through the best part of £24mln since it joined AIM back in 2014, and has asked investors for up to another £3.2mln.
It plans to raise the money through a heavily discounted placing of up to 3.2bn shares at 0.1p apiece, while it will also issue up to 1.39bn warrants which come with an exercise price of 0.2p.
The proceeds will be used to settle outstanding liabilities which total around £0.5mln, while they will also be used to implement a new digital marketing strategy.
Seeking shareholder approval
TPOP said it has most of the investors lined up and ready to go but the fundraise still needs shareholder approval and a meeting has been arranged for 22 December when the vote will take place.
If shareholders decide not to pass the placing and warrant issue, TPOP will have to “urgently seek alternative sources of funding”, although it concedes that finding the cash from elsewhere is “unlikely”.
“In the absence of any other source of funding, there may be no alternative but to place the company into insolvency proceedings.”
TPOP shares closed at 0.53p on Wednesday but plunged 62.4% on Thursday morning to 0.2p. Only a couple of years ago they were changing hands for more than 140p.