LONDON (Alliance News) - Digital media and technology firm Milestone Group PLC on Tuesday said it has raised funds via a new share placing at a significantly lower price than in its previous fundraising attempt in October.
Milestone had said last week it intended to launch a new share placing after said it had not received the proceeds from the GBP1.4 million placing it conducted in October at 1.50p per share. The company had said any new share issue would likely be at a significantly lower price than that.
On Tuesday, Milestone has raised GBP518,220 via the placing of 172.4 million shares at 0.30 pence per share, a fifth of the previous price. The stock was down 33% at 0.350p on Tuesday.
In addition to the new fundraising, Milestone said it has received GBP60,000 from some of the investors secured by its broker, Hybridan LLP, in the October fundraising. Those investors also will subscribe for another 24.0 million shares in Milestone at the par value of 0.10p, raising another GBP24,000.
The effect of this is that those broker investors ultimately have bought the shares they subscribed for in October at 0.30p per share on average, rather than at the original 1.50p price.
In total, this means Milestone has raised GBP601,220.
Milestone said it is still pursuing the funds it did not receive in the October placing, which relate to shares issued to an investor procured by the company rather than its broker, but GBP1.3 million remains outstanding.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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