Photonstar LED Group PLC (LON:PSL) has raised gross proceeds of £100,000 via a placing to provide the company with additional working capital and further strengthen its balance sheet.
The AIM-listed group said the placing of 500mln new ordinary shares was undertaken by its joint broker Peterhouse Capital with new and existing investors at a price of 0.02p each, the same level that Photostar shares closed trading at on Wednesday after a 17% decline that session.
READ: PhotonStar LED bolsters its balance sheet with share placing to raise gross proceeds of £100,000
The designer and manufacturer of intelligent lighting and building control solutions said the net proceeds will also enable its board to evaluate new business opportunities.
In addition, the firm said, a total of 120mln new ordinary shares will be issued to James McKenzie, the company's CEO and Jonathan Freeman, its chairman in lieu of unpaid salaries, also at a price of 0.02p each.
On Monday, Photostar shares got a boost after the group said its discussions with a potential new Nomad to replace Northland Capital Partners, following that firm’s merger with SPAngel, has reached the due diligence process.
The group said it believes it will be possible that it will be able to announce the appointment of the new Nomad on or before the 31st January 2019, but added no guarantees can be given at this stage.
Photonstar also announced then the appointment of Martin Lampshire as a non-executive director with immediate effect. Lampshire has worked for a number of City-based brokers including Teather & Greenwood, Charles Stanely, Hichens Harrison and Daniel Stewart.