Pulse Utilities seeks new capital
Independent electricity retailer Pulse Utilities (NZAX: PLU) hopes to fund growth through a $3.3m share purchase plan announced today.The company is offering shareholders up to $15,000 of ordinary shares at the current issue price of $0.44 per share, with
Nina Fowler
Mon, 13 Sep 2010
Independent electricity retailer Pulse Utilities (NZAX: PLU) hopes to fund growth through a $3.3m share purchase plan announced today.
The company is offering shareholders up to $15,000 of ordinary shares at the current issue price of $0.44 per share, with a top-up offer available until the purchase plan’s estimated cap of $3.3m is reached.
The new capital will be used to fund continued customer acquisition and PulseX5 Smart Meter roll-out.
Pulse has 11,000 retail customers and, according to a release today, is gaining about 350 new customers per week.
“We know that what we’re doing is working, consumers want more competition in the market and the lower electricity prices that brings,” chief executive Dene Biddlecome said.
Pulse has expanded its original business model, notable for a smart meter installation for each new customer, to include new “no-frills” brand Just Energy – which does not include a smart meter but promises the “very lowest electricity rates possible.”
Today’s announcement is the latest in a series of capital raising bids, including a successful $1m share issue in June.
In July, Pulse said it needed a further $3.5m to fully implement its business plan over the next one to two years.
The company posted revenue of $1.96m for the year to March 31, compared to $258,520 last year - though, and not usual for companies during an early growth phase, it continues to run at a loss.
The latest share purchase plan will open on September 23 and close on October 19.
Nina Fowler
Mon, 13 Sep 2010
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