Feeds

Bright Station shares continue slide

That's what happens when you run out of cash

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

Shares in Bright Station continued to slide this morning following its announcement yesterday that it was running out of cash.

Yesterday its share price dropped by a quarter to 15.25 pence wiping off £9 million from the value off the company. In early trading this morning shares fell a further 3.25 pence to 12 pence - around half what it was worth on Friday's close.

Bright Station's fall was prompted by an announcement that the e-commerce outfit is restructuring and looking for someone to bail it out.

Casualties of the overhaul include the disposal or closure of its ecommerce operations, Sparza and Officeshopper and Dan Wagner, CE of Bright Station, has already tabled his interest in acquire parts of these operations.

The company said it intends to run with its information management operation Smartlogik.

In a statement, the company said: "The Board has concluded that it is no longer feasible to continue its current rate of cash expenditure in support of all of its business initiatives notwithstanding their potential for value creation."

Its own figures show its been blowing around £3 million a month since the end of last year leaving it with a little over £4 million at the beginning of May. Unless additional funding is won it's on course to run out of cash by the summer.

Bright Station said it is currently negotiating a number of financing options. It had agreed staged funding, in principle, from Credit Suisse First Boston. However, this is dependent on a minimum market capitalisation of £30 million and the collapse of its share price looks likely to have scuppered that plan.

In March, Bright Station subsidiary, WebTop, axed more than 20 staff in a bid to cut costs. ®

Related Stories

WebTop sacks two thirds of workforce

Next gen security for virtualised datacentres

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
prev story

Whitepapers

A new approach to endpoint data protection
What is the best way to ensure comprehensive visibility, management, and control of information on both company-owned and employee-owned devices?
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.