2nd Mar 2016 13:09
LONDON (Alliance News) - Branded product developer LiteBulb Group Ltd saw its shares fall on Wednesday after one of its substantial shareholders requested the company hold an extraordinary general meeting to table proposals to make changes to the board.
Shares in LiteBulb were trading down 27% at 1.00 pence on Wednesday afternoon.
Nicholas Ponting, who holds a 12.4% stake in the company, has requested the EGM to propose board changes, including a proposal to appoint himself to the board.
Ponting was the managing director of Meld Group Ltd, which Litebulb acquired in a GBP2.0 million deal back in November 2013.
"The board notes that Mr Ponting has not provided any information with respect to his plan for dealing with the company's current financial position. The company is consulting with its advisers with respect to the requisition to convene the EGM and the proposals put forward and a further announcement will be made in due course," said Litebulb on Wednesday.
Earlier Wednesday, Litebulb said it has sold Go Entertainment Group Ltd and its subsidiaries for a nominal GBP1 to Eclipse Media Ltd, as its cash position "remains tight".
Eclipse Media is controlled by members of Go Entertainment's senior management team. Go Entertainment develops and manufactures DVD, books, magazines and gift products.
LiteBulb bought Go Entertainment in 2014, since which the division has suffered a significant decline in its core markets, resulting in a shortfall in its expected contribution to the company. In 2015, Go Entertainment made a revenue of GBP5.5 million and pretax loss of GBP1.7 million.
LiteBulb added that it remains in active discussions to secure additional financing of GBP2.0 million through an equity fundraising.
By Karolina Kaminska; [email protected]; @KarolinaAllNews
Updated by Joshua Warner; [email protected]; @JoshAlliance
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