Shares in Milestone Group PLC (LON:MSG) were higher after it announced raising £1.5mln through a subscription of 5.2mln shares at 0.29p each by Para & Co (UK) Ltd, a private limited company wholly-owned by businessman, Dr. Ramesh Para, who will join the AIM-listed firm's board.
Para & Co (UK) Ltd has agreed to fund Milestone in advance of the subscription monies through a convertible loan note totaling £400,000. Any draw down from the note will form part of the £1.5mln funds due and will be converted into ordinary shares in Milestone.
The convertible loan note may be drawn down in two tranches, the first by 15 July and the second by 15 August, the firm said.
The deal is subject to shareholder approval at a general meeting.
Para & Co has undertaken that it will not hold more than 29.9% of Milestone and Dr. Ramesh Para is intended to become a director of the digital media, technology and social impact solutions provider.
Further appointments are expected to be made to the board and management team in the near future to support the restructuring of the business, the group added.
Deborah White, CEO of Milestone said: "Following the recent review and refocusing of the business this investment gives the company a combination of financial security and access to an extensive network of commercial opportunities for the technology based products and services made available via the company's subsidiary Nexstar."
In late morning trading, Milestone shares were over 14%, or 0.02p higher at 0.16p.