The People's Operator considering placing at significant discount

The People’s Operator noted the slump in its share price and said it has been mulling the idea of an equity raising at a significant discount rather than debt financing.

During the interim results in October, the AIM-listed virtual network operator said it was considering further funding options and its major shareholders had stated their intention to provide further funds for growth.

It said at the time that the funds would be invested as to £1m equity at a price of 16.7p per share if other shareholders were also prepared to invest £1m at the same price or else the funds would be made available as a loan on terms to be agreed with the board.

However, the company said on Monday that it does not believe that £1m is available from other shareholders at 16.7p per share but has been exploring an equity raise at a “significant discount” to the current share price as a preference to debt financing.

At 1330 GMT, the shares were down 39% to 10.06p.