26th Jun 2014 08:28
LONDON (Alliance News) - LED International Holdings Ltd Thursday said it is weighing up its options regarding the funds it is due from its March and December 2013 financing arrangements, as it is yet to receive the expected cash, meaning it has now been pushed to consider alternative funding.
"Despite numerous assurances from the investors, and notwithstanding that the board remain hopefully that the funds will be received in the coming 3 to 4 weeks, the board is currently unable to confirm when, and indeed if, those funds will be received," LED said in a statement.
"The company continues to experience significant constraints on its working capital. As a result of this, as previously announced, the board is endeavouring to secure alternative funding in the near future which may not be forthcoming," LED added.
It warned that it will have to take action to satisfy its creditors if the funding doesn't emerge within six to eight weeks, which may result in shareholders' value being "severely reduced or becoming nil".
LED also said that it will apply for another extension for the some GBP2.0 million it needs to contribute to its leasing finance company, Green Pearl Leasing (China) Company Ltd. LED cautioned that the deadline extension request, which will be made to the Shanghai Municipal Commission of Commerce, may or may not be granted.
On May 16, LED had warned that it hadn't received a CNY100 million investment it had secured in March from Best Merchant Ventures Ltd, Legend Giant Ventures Ltd, Talent Plus Ventures Ltd and Y&C International Holdings Group Ltd, through the issuance of convertible loan notes and a conditional placing of new shares The funds were earmarked for Green Pearl Leasing Co Ltd and general working capital. In December, the company said it had raised CNY31.0 million through a conditional new share placing.
LED shares were Thursday quoted at 8.50 pence, down 11%.
By Samuel Agini; [email protected]; @samuelagini
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