Light Science Technologies Holdings PLC (AIM:LST) (LSTH) said it has conditionally raised £1.5mln at a price of 1p per share via a placing and subscription and is looking to raise up to a further £500,000 at the same price via a retail offer.
The gross proceeds of the fundraising are expected to predominantly be used for product development and intellectual property protection in its Controlled Environment Agriculture division, where it makes grow lights and sensor technology for the vertical farming and medicinal farming markets, along with glasshouses, polytunnels and other indoor farming customers.
Some of the cash will also be used for LSTH's general working capital purposes, including costs associated with the fundraising.
Of the 150mln shares agreed to be issued so far, 107.75mln were in the placing managed by joint broker Oberon Investments, of which 29.5mln were been taken up by a single investor.
Chief executive Simon Deacon subscribed for 15mln shares, which constitutes a related party transaction under the AIM rules, which the other directors and nominated adviser Strand Hanson considered to be fair and reasonable insofar as shareholders are concerned.