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LONDON (Alliance News) - Shares in Blue Star Capital PLC plunged on Thursday after the company cancelled its proposed acquisition of investee SatoshiPay Ltd.
Blue Star Capital shares were trading down 30% at 0.17 pence. They were restored to trading on Thursday after having been suspended since July when the proposed reverse takeover was announced.
The company blamed difficult market conditions for its decision, as the period since the takeover was proposed was "marked by significant uncertainty in global financial markets".
"It therefore proved more difficult to reach the targeted level of fundraise in the time anticipated," Blue Star said.
Blue Star continues to hold a 30% stake in SatoshiPay valued at approximately GBP4.5 million.
Furthermore, Blue Star said it raised GBP200,000 via the issue of 111.1 million shares at 0.18p each.
The proceeds of the placing will be used for working capital purposes and to settle adviser fees related to the abandoned merger.
Admission of the new shares to trading on AIM is expected on Tuesday, following which the firm will have 1.99 billion shares in issue.
Blue Star on Thursday also reported the appointment of Sean King as non-executive director of the company with immediate effect.
"King has over 20 years of experience in publishing and digital content, having set up Square One Group in 1994, which was one of the fastest growing independent content agencies in the UK," Blue Star explained.
