SYDNEY: Photon Group founder Tim Hughes has officially resigned as a director at the beleaguered marketing services group.
He stepped down from his role following pressure from investors, although he still retains about 3.5% of the shares still on issue.
The news comes only a week after Photon lodged a draft prospectus for a $100 million capital raising in the wake of renegotiating 99.7% of its $176 million earn-out liabilities.
Under the renegotiated deals, Photon-owned companies, including BMF, BWM and Naked, will receive 35% of their earn-out payments in cash and 15% in new Photon shares.
If the capital raising venture is successful, Photon will be able to meet its earn-out obligations in September. However, a Photon spokesperson said: "Negotiations with relevant parties for the equity raising and debt refinancing are ongoing and incomplete and there is no certainty that these elements of the recapitalisation will be satisfactorily completed."
Tim Hughes stepped down as executive chairman of Photon in late June.
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