logo-loader
viewMilestone Group PLC

Milestone to try again with share placing

The October share placing, priced at 1.5p and at a premium to the prevailing market price, ran into some resistance.

Pounds and calculator
The company is having to manage its cash resources carefully

Milestone Group PLC (LON:MSG) is to have another go at a share placing, after its October fund-raising fell apart.

On 20 October the media company announced it had placed 92.3mln shares at 1.5p a share, which raised eyebrows in some quarters, as the day before the shares had closed with a mid-market price of 1.3p.

On 9 November, it emerged that one investor sourced by the company had not stumped up the £1.25mln for the shares it had committed to buy. Milestone said its legal advisers have told it that the 92.3mln shares, including those earmarked for the recalcitrant investor, were validly allotted and issued. Milestone intends to pursue the reluctant investor for the outstanding funds.

In the meantime, Milestone’s broker has returned the £135,000 it received from those investors who did stump up the cash for the company’s newly issued shares.

The company, which has limited cash resources, is trying to get another placing off the ground but with the share price now trading at half a penny each, it looks nailed on that any shares placed will not be at the generous 1.5p level of the abortive October placing.

Shares in Milestone rose 5.3% on the news. 

Quick facts: Milestone Group PLC

Price: - -

AIM:MSG
Market: AIM
Market Cap: -
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Animoca Brands launches Addams Family mobile game and leads investment round...

Animoca Brands Corporation Limited (ASX:AB1) chairman and co-founder Yat Siu updates Proactive on the launch of the official mobile game for Metro Goldwyn Mayer Studios (MGM) film of “The Addams Family”. The chairman also updates the market on entering into a subscription agreement with Sky...

3 hours, 1 minute ago

2 min read