LONDON (Alliance News) - Branded product developer Litebulb Group Ltd on Monday said it has continued talks on its convertible loan notes and said it had identified the need for additional financing.
Litebulb said following talks with its convertible loan note holders, it expects the refinancing of the notes to take the form of part of the liability being converted into equity. It noted, however, the current liability of the principal of the loan notes is GBP6.6 million, much higher than its entire market capitalisation of GBP1.1 million.
Beyond that, the company said it has identified the need for around GBP2.0 million in additional financing and is exploring potential ways to secure this alongside the refinancing of the notes. It expects this financing will most likely take the form of new equity in the company.
Litebulb said it remains confident it will secure financing and said its trading prospects remain encouraging.
Shares in Litebulb were down 48% to 1.75 pence on Monday morning, one of the worst performers in the AIM All-Share.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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