LED International in the dark as investors switch off cash supply

20th Mar 2014 15:16

Investors took a dim view as Hong Kong lighting outfit LED International admitted certain investors had failed supply the cash agreed in a recent fundraising. Shares in the company were down 14.3% to 16p by 15:00 on Thursday after LED's management said they had yet to receive the funds from Rubyfield Holdings and Speedy Dragon Holdings, but remained in discussions with both parties and were mulling over legal options.In December Rubyfield and Speedy Dragon agreed with the company a working capital loan of 6m Chinese yuan (approximately £0.6m), followed a few weeks later by a conditional placing of new ordinary shares with the same investors, raising 31m yuan (£3.1m). LED said it was also is evaluating other potential avenues of funding and is in advanced discussions with another party in relation to securing this "much needed" cash injection.OH