3 Mar 2016 13:30
3 March 2016
LITEBULB GROUP LIMITED
("LiteBulb" the "Company" or the "Group")
Disposal Strategy and Suspension from Trading
LiteBulb (AIM: LBB), the branded product developer, announces that it is no longer pursuing the strategy of securing additional financing of approximately £2.0 million through an equity fundraising, alongside the associated restructuring of its current indebtedness, as announced on 22 February 2016.
The Board had successfully received indications of interest from equity investors for approximately £2.0m 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.
The Board also notes the recent EGM requisition made by 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 unnecessary uncertainty within the Group. In addition Nick Ponting has stated to the Board that he would not vote in favour of the resolutions re the fundraising and restructuring.
The Board has therefore reluctantly concluded that it must now commence an orderly disposal process of the Company's subsidiaries and BDO LLP have now been engaged to assist in this process.
Whilst the Board understand that there is interest in the Company's subsidiaries, the Directors cannot give guidance on the timeframe for, or likelihood of, realisations at this stage although the Directors do not believe that there is likely to be any return to shareholders as a result of the disposals.
The Company has requested an immediate suspension in the trading of its Ordinary Shares from trading on AIM owing to the uncertainty of any return to shareholders from the proposed disposal process.
A further update will be made in due course.
For further information, please contact:
LiteBulb Group Limited | www.litebulbgroup.com | |
Howard Partington, Interim Chief Executive | Tel: 020 3384 7100 | |
Guy Pettigrew, Group Finance Director | ||
finnCap (NOMAD & Broker) | Tel: 020 7220 0500 | |
Stuart Andrews / Adrian Hargrave / Scott Mathieson (Corporate Finance) | ||
Joanna Scott (Corporate Broking) | ||
| ||
Walbrook PR Limited | Tel: 020 7933 8780 or litebulb@walbrookpr.com | |
Paul McManus / Sam Allen | Mob: 07980 541 893 / Mob: 07884 664 686 | |
About LiteBulb Group
LiteBulb Group designs, manufactures and distributes innovative brands and products to the global retail market.
LiteBulb Products, our wide range of products are sold in over 30 countries through blue chip retailers including: Tesco, M&S, John Lewis Partnership, Sainsbury's, Debenhams, Wilkinson's, Next, Boots, WH Smiths, Amazon, Target and Costco.
LiteBulb Creative is a creative agency with global reach, delivering compelling and agile brand extension programmes to the entertainment industry. LiteBulb Creative has designed products and campaigns for clients around the world, including Disney, Hasbro and Miramax.