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.