LONDON (Alliance News) - LiteBulb Group Ltd on Thursday said its shares have been suspended from AIM upon its request after it decided to no longer pursue the strategy of securing additional financing or the associated restructuring of its debt.
Last month, the branded products developer said it hoped to secure financing of around GBP2.0 million through an equity fundraising.
On Thursday, it said it "successfully received indications of interest" from equity investors for the relevant sum that included participation by the current executive management team and two of the non-executive directors.
However, based on "recent events" the board no longer believes that it is "appropriate to maintain the group structure" and does not believe that agreement on the terms of a "restructure consistent with the equity raise can be reached with convertible bondholders in a timely fashion".
LiteBulb added that Sales Director Nick Ponting's requisition, announced on Wednesday, to remove certain members of the board has contributed to "further unnecessary uncertainty" within the group, although it said it was confident that any such resolutions would not be passed.
Ponting indicated that he would not vote in favour of the fundraising and restructuring resolutions, LiteBulb said.
Ponting was the managing director of Meld Group Ltd, which Litebulb acquired in a GBP2.0 million deal back in November 2013.
As a result, the board has concluded that it must now dispose of its subsidiaries, and that it does not think that there is likely to be any return to shareholders following the disposals.
Also on 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.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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