Photon Completes First Stage of Recap

Troubled Australian marcoms and research group Photon has been re-instated on the ASX (Australian Stock Exchange), and has already completed the first stage of its recapitalization plan by raising $AUD 76m through a $AUD 102.5m share placement.

Photon - which owns research agencies The Leading Edge and Jigsaw Strategic Research - was suspended from the ASX when it announced a debt of $AUD 271m and earn-out liabilities totaling $AUD 176m.

Earlier this month, CEO Jeremy Philips successfully renegotiated earn-out payments with the 16 eligible Photon companies, when he persuaded their owners to accept reduced up-front cash worth 35% of the total payout. Owners also accepted 15% of the payout in Photon shares with the remainder made up of a deferred cash payment.

Cash generated by yesterday's stock offering will be used to pay down debt, and cover the $AUD 22.5m worth of deferred earn-out payments due in late September.

Shares are being offered at 10 cents each - a 90% drop from Photon's last traded price of $AUD 1.02 on June 4.

Web site: www.photongroup.com .