Photonstar to put struggling LED business into administration

31st Oct 2018 08:09

(Sharecast News) - PhotonStar called together shareholders on Wednesday to vote on putting its legacy LED subsidiary into liquidation.Photonstar's LED subsidiary ceased trading on Wednesday after the AIM-listed firm told investors it was considering selling off the unit or putting it into administration.The subsidiary was responsible for £1.15m of the group's £1.33m in revenues throughout the first half of the year but was also the source of the majority of Photonstar's trading losses.Photonstar said its debts will be significantly reduced as a result of the unit going into administration and stated that its assets were ring-fenced from its other operations.However, as a result of the LED business' losses, the outfit will have to pull together additional funds in order to keep its PhotonStar Technology subsidiary above water in the medium-term.As of 1455 BST, Photonstar shares had tanked 70% to 0.040p.