Milestone Group said it intends to pursue a company placee relating to outstanding proceeds from its October placing, and unveiled some details of a new placing.
On 20 October 2016, Milestone said it had placed 92.3m shares at 1.5p a share, raising £1,385,000 gross.
These shares were admitted to trading on AIM on 31 October 2016.
By Nov. 9, £1.25m of the gross proceeds remained outstanding, but the broker was in receipt of £135,000.
“Since the 9 November 2016 announcement, the Company’s broker, at their request and with approval from the Company, returned the sum of £135,000 to the Broker Placees,” Milestone said.
“The Company and the Company’s broker have been in communication with the Broker Placees regarding the £135,000 and discussions are ongoing.
“Nevertheless, the Company has received a legal opinion that the 92,333,332 October 2016 placing shares were validly allotted and issued.”
Milestone said it was seeking to undertake a new placing that, as a result of the share price movement since the Oct. 20, was likely to be at a price below 1.5p per share.
“It is intended that the Broker Placees will be offered the opportunity to participate in the New Placing on revised terms,” the company said.
“The Company anticipates making a further announcement in relation to the New Placing shortly, however there can be no certainty that the New Placing will occur or that other forms of financing will be available to the Company.
“The Company has limited cash resources and continues to manage its working capital position carefully.”
Story provided by StockMarketWire.com