Photonstar LED Group PLC (LON:PSL) is having to rethink its plans after shareholders vetoed its latest fundraise.
The company had intended to raise £200,000 but shareholders did not grant a pre-emption waiver.
Costs of closing down Photonstar Technology have also come in higher than expected, which has left it with enough funds to keep going but not to pursue its previous strategy.
Photonstar is looking to acquire a trading business after becoming a cash shell following the closure of its technology arm.
Options to raise more money are under consideration.
Chairman Jonathan Freeman intends to leave the board by the end of April.