Photonstar LED Group PLC (LON:PSL) has conditionally raised £200,000 via a placing to provide further funds to support its search for a reverse takeover and also announced that a key existing shareholder is maintaining his stake in the shell company.
The AIM-listed firm said it has placed 1,666,666,666 new ordinary shares with new and existing shareholders at a price of 0.012p each, subject to approval at the company's General Meeting on 5 April 2019.
READ: Photonstar LED raises cash, says already met with a number of promising potential reverse takeover acquisitions
The group added that placees will also be issued with one warrant for each two placing shares, with the warrants having an exercise price of 0.02p and a life of 12 months.
It said any outstanding placing warrants will convert into ordinary shares at the re-admission of the company's shares to trading following the expected completion of a reverse takeover.
The group said the net proceeds of the placing will provide it with further funds to enable the board of directors to carry out a reverse takeover of a suitable target.
Photostar LED also announced that existing shareholder Antos Glogowski is maintaining his shareholding in the company at 14.22%.
Earlier this month, the company raised gross proceeds of £170,000 through a placing of 1,700,000,000 new ordinary shares of at a price of 0.01p each.
In addition, two of its non-executive directors, John Treacy and Jonathan Freeman conditionally subscribed for a further 240,000,000 new ordinary shares at the same price.
The group said then that, in keeping with its new strategy, it is proposing that the company's name is changed to Bould Opportunities PLC.
Photostar LED added that it had already met with a number of promising potential acquisitions and, whilst no guarantees can ever be made to the execution of a successful reverse takeover, it is the board's intent to identify and execute a deal “in all prudent haste”.
In early trading, Photonstar LED shares were changing hands at 0.1p each, down 10% on Monday’s close.