LBB.L Share News (LBB)

(ShareCast News) - Branded product developer LiteBulb announced on Thursday it had ditched its strategy of securing £2m financing through an equity fundraising, alongside a restructuring of its debt, as announced on 22 February, and was embarking on a disposals process.The AIM-traded firm said it had received indications of interest from equity investors for £2m that included participation by the current executive management team and two of the non executive directors, but based on recent events the board no longer believed it was appropriate to maintain the group's structure.It also did not believe that agreement on the terms of a restructure consistent with the equity raise could be reached with convertible bondholders in a timely fashion."The board also notes the recent EGM requisition made by [sales director] Nick Ponting to remove certain members of the board, and whilst confident that any such resolutions would not be passed, this action has contributed to further uncertainty within the group," LiteBulb's board said in a statement."In addition, Nick Ponting has stated to the board that he would not vote in favour of the resolutions [for] the fundraising and restructuring," it added.LiteBulb's board said it had 'reluctantly' concluded that a disposal of the company's subsidiaries was the best course of action, and had engaged BDO to assist in that process.The directors said they could not give guidance on the timeframe for, or the likelihood of, any realisations at this state, though the did confirm any return to shareholders as a result of the disposals was unlikely.LiteBulb requested an immediate suspension of its ordinary shares from trading on AIM, owing to that uncertainty.