News

Photon Group shifts only half of its new shares

Less than half of the new Photon Group shares available in the retail round of its recapitalisation process were taken up, the company has revealed.  

In an update to the market, the company said: “The number of new shares offered under the Retail Shareholder offer not taken up by eligible shareholders is 204,368,106”.

Although it does not say it in the update, the prospectus on the fundraising which was issued in mid-August reveals that the plan was to issue 400m shares worth $40m in the placement, meaning only 196m, or 49% of the shares were taken up. The offer closed on Thursday.

The shares were priced at 10c each, leaving a shortfall in the fundraising of just over $20m. In the other part of Photon’s recapitalisation, a further 624.5m shares, worth $62.5m, were offered to existing shareholders. That allocation was taken up. The remaining 200m shares will be issued to the underwriter of the fundraising.

All of the new shares should start trading on the ASX on Thursday. Photon shares are currently trading at around 9.7c.

Photon – owner of agencies such as BMF, BWM, Naked Communications and Bellamy Hayden, which closes its doors at the end of this week – revealed the depths of its problems at the end of June.

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