The shares - which represent 5.5% of the company's enlarged issued share capital, have been subscribed by Karen Haddon.

The proceeds have been applied as a non refundable deposit in connection with a possible acquisition.

Haddon will, subject to certain conditions, also be issued with 11,039,200 warrants at 1p each entitling her to subscribe for one new ordinary share of 1p each at any time between the issue of the warrants and 30 November 2012.

The company also announced that Jon Pither had stepped down from the board in order to focus on his other business interests.

Story provided by Business Financial Newswire