9th Apr 2019 14:31
LONDON (Alliance News) - Photonstar LED Group PLC on Tuesday said it is considering its funding options after shareholders voted against its fourth resolution on Friday's general meeting.
Shares in Photonstar were up 7.0% at 0.023 pence in afternoon trading.
The lack of shareholder support for the resolution means that the company does not have the authority to issue new shares, except on a non pre-emptive basis.
While a number of small placings have occurred over the last couple of months, and the company has enough money to meet its immediate needs, Photonstar does not have enough cash to deliver its new strategy.
This lack of funds is due to higher than expected costs around ceasing its previous operations as PhotonStar Technoloy and settling its accrued expenses.
"The board will therefore be considering other funding strategies which may include pre-emptive share issues such as an open offer and may ask for further authority to issue shares outside of the current pre-emptive authority," said Photonstar.
Following the close of its previous PhotonStar Technoloy business, Photonstar is seeking to acquire a new business via a reverse takeover. The company is "agnostic in relation to sector" but is seeking something that will "create significant value for shareholders in the form of capital growth and/or dividends".
Photonstar is currently a cash shell under AIM rules and must make an acquisition within six months of closing PhotonStar Technoloy or its shares will be suspended. It will have a further six months after that to make an acquisition before the shares are cancelled.
The company's chair, Jonathan Freeman, will leave at the end of April and the company is in talks for a successor.
The company will change its name to Bould Opportunities PLC.