PhotonStar LED Group has conditionally raised £2.2 million through the sale of shares.
31,400,000 new ordinary shares of 1p each have been placed – a method of selling new shares in the primary market – at a price of 7p per placing share. The net proceeds will be used to maximise commercial opportunities for the company's Halcyon system.
In addition, PhotonStar has announced a trading update for the six months to 30 June 2014. Group revenue in the first half was £3.8 million, down from £4.3 million last year. But the company said it has seen growth from its wholesaler and house builder contracts, which it expects to continue into the second half of the year.
However, as in prior years, the company said it expected some seasonality in its revenue streams. Several large new-build construction projects which were expected to be completed in the first half of the year have been delayed into the second half, primarily due to adverse weather conditions during the first half.
As a result, he board has said it is comfortable that the full year results will be in line with expectations.
During the first half of the year, PhotonStar completed the technical milestones for its grant from the Department of Energy & Climate Change (DECC) Entrepreneurs Fund which underpin the Halcyon smart circadian retrofit LED lighting system.
As previously reported by Lighting, PhotonStar received funding of £372,269 as part of a £16 million government grant initiative intended to help bring new low carbon products to market. The wireless solution allows users to control lighting using a WiFi-enabled smartphone or tablet.
Shipping of beta test systems of the Halcyon next generation retrofit home lighting system also started in the second quarter.
James McKenzie, chief executive of PhotonStar, said: "The completion of the milestone-based DECC grant validates the technology underpinning the Group's Halcyon smart Circadian retrofit LED lighting system for both residential and commercial applications.
"The beta test systems and the field trials of the commercial Halcyon product move things on apace with a full launch expected later in 2014.
"The new investment, which has come from both existing shareholders and new institutional holders, will be used to maximise the significant commercial opportunities that exist for the company with its new Halcyon domestic and commercial system. We will also be pursuing joint development agreements and licensing opportunities to accelerate the uptake of PhotonStar's technology."
The placing shares will represent approximately 21.9 per cent of the company's issued share capital, as enlarged by the placing.
