Floundering firm PhotonStar changes name to Bould Opportunities

Struggling lighting manufacturing company PhotonStar LED has changed its name to Bould Opportunities as it seeks a new direction, it confirmed on Monday.

The AIM-traded firm had announced the name change on 8 April, with its new TIDM being BOU.

PhotonStar had closed down its PhotonStar Technology operation, following the approval of shareholders, as part of a strategy to acquire a business that was seeking an AIM quoted platform via a reverse takeover.

Now that it had closed down its operations, it was a cash shell under AIM Rule 15 and thus had six months in which to make an acquisition that constituted a reverse takeover.

“The directors are agnostic in relation to sector but will focus on an acquisition that can create significant value for shareholders in the form of capital growth or dividends,” the board said in its previous statement.

“The company has already met with a number of promising potential acquisition targets and whilst no guarantee can ever be made to the execution of a successful reverse takeover, it is the board's intention to identify and execute a reverse takeover in prudent haste.”

Funding remained an issue for the firm, following the voting down of the fourth resolution by shareholders at a general meeting on 5 April, which meant the board did not have the authority to issue any new shares other than on a pre-emptive basis.

Prior to that, the directors had warned that should the resolutions of the general meeting be voted down, they would be forced to consider the viability of the firm’s future.

“Although the company has undertaken a number of small placings in the past few months, the costs associated with ceasing operations and settling accrued expenditures from the legacy business were greater than originally anticipated,” the board said.

“The board believe that whilst the current cash position is enough to meet the company's immediate cash requirements, it is not enough to deliver on the new strategy approved at the general meeting.”

Bould Opportunities said it would therefore be considering other funding strategies, which could include pre-emptive share issues such as an open offer, and could ask for further authority to issue shares outside of the current pre-emptive authority.

“The change of name of the company does not reflect a change in the rights of the shareholders of the company,” the board added on Monday.