According to its prospectus, released this week, Photon has successfully raised $40 million from a placement and another $36m from institutional shareholders.

Mallesons Stephen Jaques has acted for the underwriters on the recapitalisation, following its strategic review. The firm advised UBS and Macquarie.

The New Lawyer has not yet learned which firm is advising Photon.

The dilutive raising is priced at 10 cents a share, which Photon sank to this week, down on its last traded price on 4 June at $1.02.

The $102.5 capital raising involves the issue of approximately 1.52 billion shares, at 10 cents per share, to both existing and new shareholders.

The Mallesons team comprised mergers and acquisitions partner Dave Friedlander, senior associate Mark Bryant and solicitor Avi Naidu.

Friedlander said: "The outcome is testament to the hard work of the new Photon management and the Macquarie and UBS teams.

“Regulatory issues and a challenging market gave the deal its share of twists and turns but it is a great outcome for the company."

Naked Communications, the last big acquisition by Photon Group, is now on the brink of being sold, the prospectus said.

“As part of the Deferred Consideration Restructure Agreement with Naked Communications Limited, Photon and Naked have agreed to use reasonable endeavours to agree to a new long-term incentive scheme within a specified time period,” it read.

“If agreement is not reached within this time, the Naked Deferred Consideration Beneficiaries may elect to either acquire the Naked group, or require Photon to initiate a competitive sale process for the Naked group.”