LONDON (Alliance News) - Papillon Holdings PLC said on Tuesday its new broker and financial adviser has committed to invest GBP300,000 in the company, as the firm also reported a widened annual loss.
Papillon has appointed Novum Securities as its sole broker and financial advisor, effective immediately. Novum will be investing GBP300,000 into Papillon, completing a GBP500,000 fundraise via the issue of convertible loan notes.
The proceeds, which will be drawn down as required, are to be used for general corporate purposes as well as being lent to the company's initial investment, Pace Cloud Ltd.
Papillion in May 2018 reached agreement via a non-binding heads of terms to take a 50% stake in Pace Cloud. The transaction is progressing well, Papillion said, and it has executed a share purchase agreement to buy the stake.
Meanwhile, Papillon recorded a pretax loss of GBP307,000 for 2018, wider than the GBP161,000 reported for 2017. The company reported no revenue in 2018, compared to GBP300,000 in 2017.
Shares in Papillon are currently suspended.