Proactive Investors - Run By Investors For Investors

PhotonStar LED bolsters its balance sheet with share placing to raise gross proceeds of £100,000

The group said the net proceeds will provide the company with additional working capital and will also enable its board to initiate a further cost reduction programme and to evaluate new business opportunities
Cash raising
The placing – which was undertaken by the company's joint broker Peterhouse Capital - will also strengthen the company's balance sheet, it added

PhotonStar LED Group PLC (LON:PSL) has raised gross proceeds of £100,000 from a placing of 500,000,000 new ordinary shares with new and existing investors at a price of 0.02p each.

The group said the net proceeds will provide the company with additional working capital and will also enable its board to initiate a further cost reduction programme and to evaluate new business opportunities.

READ: PhotonStar’s fixed lighting subsidiary placed into liquidation

The placing – which was undertaken by the company's joint broker Peterhouse Capital - will also strengthen the company's balance sheet, it added.

Photonstar shares closed trading on Thursday at 0.06p.

Last month, the group’s fixed LED lighting subsidiary, PhotonStar LED Limited, has been placed into liquidation.

PhotonStar had warned investors at the end of October that trading conditions for the subsidiary “continued to be very challenging” and that it was weighing up its options, which included a distressed sale.

The PhotonStar LED subsidiary generated the majority of the group's revenues, accounting for £1.15mln of the £1.33mln reported for the first half of 2018 but it also incurred the majority of the group's trading losses.

The group's trade finance facility borrowing was with the subsidiary, so its debts should be significantly reduced as a result of the unit going into administration.

View full PSL profile View Profile

PhotonStar LED Group PLC Timeline

Related Articles

MRI scan
February 22 2019
In February, the firm appointed Dr Tom Oakley, a qualified radiologist and former director of NHS services at telemedicine firm Synergix Health, as the new chief executive of its trading company Feedback Medical
Light fittings
August 23 2018
The group's traditional LED business is operating in a fiercely competitive environment. The group is pinning its hopes on becoming a software and services business
Electrolyser
Tue
ITM Power’s first-half results in January showed the hydrogen energy solutions provider has significantly strengthened its capability to deliver larger industrial scale projects

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use