Restructuring plans for troubled IT firm Bright Station seem to be doomed after shares fell 26 per cent to 15.5p, below the minimum level at which CSFB had agreed to finance the company. Reports also indicate that CEO Dan Wagner has resigned.
Bright Station had been close to an injection of £2.5m from CSFB.
No one at Bright Station was available for comment.
Under the rescue plans, CSFB was to issue a £2.5m convertible bond for SmartLogik, Bright Station’s knowledge management business and its biggest asset. The loan would rise to £25m if the business performed well.
However, CSFB said it would not provide the funding should Bright Station’s market cap fall below £30m. Bright Station closed yesterday at 21p a share, valuing the company at about £36m.
But the 26 per cent fall in shares today means Bright Station now has a valuation of about £26.6m.
The rescue plan involved taking all the Bright Station businesses except SmartLogik private. These include Sparza and Office Shopper, both e-commerce companies.
Bright Station had about £8m left to spend at the end of March. The company used to be an online information provider called Dialog before entrepreneur Wagner created Bright Station.