PhotonStar LED Group PLC (LON:PSL) has raised £430,000 via a share placing with new and existing investors and directors of the company to fund the roll-out of its cloud-based Internet of Things lighting solution for buildings.
The shares were placed at a price of 0.15p per share. Photonstar shares closed trading on Tuesday at 0.28p, down 35% on Monday's close.
The AIM-listed group said the halcyon system has already been installed in several sites in the company's target markets of housing associations, hospitality, student accommodation and offices.
In addition, the firm said, there are 3 trials for cloudBMS v2 which are currently ongoing and a further 5 trials are planned for installation before the end of H1 2018.
The company is also actively engaged in discussions with a further 10 organisations which have large multisite property portfolios, all of whom are looking to reduce building operating costs. Halcyon is wireless and therefore a cost-effective system to install into existing buildings, which represent the majority of these organisation's estates.
The group said as the placing price is less than the current 1p nominal value of its existing ordinary shares, it will be necessary for the company to carry out a subdivision of its existing ordinary shares into one new ordinary share of 0.01p and one deferred share of 0.99p to enable the placing to complete.
It added that the new ordinary shares will continue to carry the same rights as attached to the existing ordinary shares, save for the reduction in nominal value.
Photostar said two of its directors, chief executive officer James Mackenzie and chief technology officer Majid Zoorob, have subscribed for around 19.99mln of the placing shares – 13.33mln and 6.66mln respectively.
As a result, the firm added, McKenzie’s holding of ordinary shares in the company following the placing will be 6.1%, and Zoorob’s holding will be 3.6%.
Walker Cripps clients to hold 15.6% stake
In addition, Photonstar said, Walker Crips PLC on behalf of its clients, is subscribing for 43.5mln placing shares meaning the broker, on behalf of its clients, will have an interest representing 15.6% of the company's enlarged issued share capital.
PhotonStar also revealed that it has appointed Peterhouse – which undertook the placing - as the company's joint broker with immediate effect.