20th Mar 2014 09:23
LONDON (Alliance News) - LED International Holdings Ltd Thursday said it still hasn't received the funds from its recent subscription offer, and while it is still in talks with the subscribers about when the funds might be paid, it is also considering its legal rights and is now also in advanced talks with another party about getting much-needed funding.
The energy saving products company had announced a proposed capital raising at the end of December after its energy management contract business plan was delayed. At that time, it borrowed CNY6 million from Rubyfield Holdings Ltd and Speedy Dragon Holdings Ltd under a working capital loan, and said it would raise CNY25 million through a subscription with those companies. The placing and the loan proceeds combined total CNY31 million.
In February, the company had said that it was still trying to raise CNY31 million from the two investors in an attempt to secure its immediate future and fund its new lease financing unit.
Its new leasing unit, Green Pearl Leasing, will provide lease financing to customers. It has been awarded a leasing finance license, but LED International was required to contribute 20% of the subsidiary's CNY100 million registered capital within three months of the license being approved. It has to contribute the remaining money within two years of the approval.
Thursday, the company said the subscription funds still weren't forthcoming and while talks with Rubyfield Holdings and Speedy Dragon Holdings were continuing, it was also considering its legal rights.
"In parallel, LED is evaluating other potential avenues of funding and is in advanced discussions with another party in relation to securing much needed funding," it said, adding that further announcements will be made when appropriate.
LED International shares last traded at 21 pence a share in London.
By Steve McGrath; [email protected]; @SteveMcGrath1
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