Pulse Utilities raises $1m, puts in place plans to raise more
NZAX-listed Pulse Utilities New Zealand has raised $1 million in new capital by selling two million ordinary shares to qualified investors at 50c a share.
The electricity retailer has also placed a further $15,000 convertible notes on the terms approved by shareholders at last year's special meeting.
Pulse said it needed a further $3.5 million of capital to implement its business plan over the next two years.
The company needs new capital because it installs smart meters when it acquires new customers. In return customers sign up for a minimum term of six months.
As new customers join, Pulse must purchase more electricity to supply customers, post more security for the purchase of electricity on the electricity market and fund office resources to service new customers.
The company wants to be able to issue up to another two million ordinary shares at minimum price of 50c and 2.395 million convertible notes with a face value of $1.