26th Feb 2014 13:19
LONDON (Alliance News) - LED International Holdings Ltd saw its shares slide Wednesday after it warned that its hasn't yet received the funds from its subscription offer, and while it is in talks with the subscribers it is also evaluating other potential avenues of 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.
Earlier this month, the company 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, warning its shareholders that if they don't approve the CNY25 million subscription, they may see the value of their shares wiped out.
Wednesday, the company's shareholders approved the subscription.
However, LED International warned that it still hasn't received any subscription funds from Rubyfield or Speedy Dragon.
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.
Its shares were down 36.6% at 0.222 pence Wednesday afternoon.
By Steve McGrath; [email protected]; @SteveMcGrath1
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