Photon is convincing 50 firms composing the marketing services group to accept profitable earn-out payments in stock, instead of cash.

Jeremy Philips, the group's new CEO and former senior News Corporation executive, has reportedly met with some success in persuading companies such as London-based media strategy company Naked to take their earn-out bonus in stock ahead of an anticipated $200 million rights issue later this week.

Photon shares were suspended briefly after Mr Philips joined the company earlier this month. He is expected to give details of a publicly expected profit downgrade and capital raising tomorrow.

Photon will also apparently announce 50 lay-offs in the troubled units of the company, increasing its total number of redundancies to more than 200 since the onset of 2009.

Reports said that Photon could accumulate as much as $200 million through what is likely to be a non-renounceable rights issue. The new stock could be valued at 25c a share -- a huge dilution to its last price of $1.02.

The rights issue would surpass the Photon's entire market value before the suspension of the shares and represent a large cut in value for existing shareholders.

Bermuda-based Reg Grundy, owner of 24 per cent of the company, and executive chairman Tim Hughes, who holds about 4 per cent, are expected to participate in Photon's fund-raising efforts. It is not yet confirmed whether Crown executive chairman James Packer, who acquired 4.5 per cent of Photon last April, will take part in the capital raising.

The proceeds are expected to pay down debt, including the $50 million earn-out payments owed to executives.