Blue Star Capital has conditionally placed 178,571,429 new ordinary shares at 0.28p apiece raising gross proceeds of £0.50m.
The company said the placing was oversubscribed and the placing price represents a 6.67% discount to last night's closing price of 0.3p.
Blue Star said the net proceeds of approximately £0.47m would be used for general working capital purposes and to support existing investee companies where needed and should give it flexibility to look at new investment opportunities in the future.
It said that as part of the placing,chief executive Tony Fabrizi had subscribed for 5,000,000 ordinary shares at the placing price.
Following admission, Fabrizi would be interested in 30,000,000 ordinary shares in aggregate, representing approximately 1.6 % of the company's enlarged issued share capital.
At 9:58am: (LON:BLU) Blue Star Capital PLC share price was -0.01p at 0.29p