Wednesday 23 August 2017 The one stop source for free breaking news, expert analysis, and videos on AIM and LSE listed shares

Photonstar LED – after-hours monster-discount placing. Anything to see here Guv?

By Nigel Somerville, the Deputy Sheriff of AIM | Thursday 4 May 2017

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

AIM-listed Photonstar LED (PSL) was the subject last week, in the wake of a rampfest RNS, of a Steve Moore conclusion of no financials, no cash, avoid. How bang-on-the-(lack of)-money, for last night the company – well after-hours at 5.24pm – announced a massively discounted keep-the-lights-on placing for a paltry £465,000 at an even more paltry 1.25p – vs a 2nd May closing price of 2.85p and yesterday of over 3p. Nice work. Now take a peek at the share price and volume chart of yesterday, courtesy of ADVFN. Surely it could not be that there was mass forward-selling of placing shares between 8am and 3pm?



Nah, that sort of thing never happens on AIM. Not ever. So it is completely impossible that the book for yesterday’s twilight robbery was closed at 3pm, so that all the corporate spivs could count their winnings before heading to the Dog and Duck for a pre-coke-and-hookers warm-up. I reckon 5% of £465,000 - £23,500 – would get you and a couple of mates a decent night out and still pay for a holiday.

But, as I said, that sort of thing just doesn’t happen on AIM so there is no possibility that anyone was happily dumping stock at over 3p safe in the knowledge that they could settle up in a few days with placing shares picked up at 1.25p.

Last week, before the nonsense of an RNS promising oodles of jam tomorrow but with no financials and no certainty of anything other than a letter of intent that something might get rolled out, the shares were trading at a fraction above 0.5p so I guess that pre-existing holders will be delighted that the company has raised a bit of meter-money without diluting them. As for those though who were taken in by Friday’s RNS, paying anything up to 3.65p, well I’m sure they’ll be delighted with Photonstar’s lovely management for getting a placing away at just 1.25p. The company tells us that:

The net proceeds of the Placing will be used to fund the proposed roll out of the halcyonPRO2 and its halcyon CloudBMS platform as per the announcement of 28 April 2017. The net proceeds will also provide the Company with additional working capital.

One rather fancies emphasis on the second sentence. Shame on broker (and Nomad) Northland Capital Partners.

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