Pulse Utilities signals convertible note sale
NZAX-listed electricity retailer Pulse Utilities New Zealand Ltd is signalling a further capital raising via the sale of convertible notes to experienced investors.The company wants to sell 5 million convertible notes for a face value of $1 per note withi
NZAX-listed electricity retailer Pulse Utilities New Zealand Ltd is signalling a further capital raising via the sale of convertible notes to experienced investors.
The company wants to sell 5 million convertible notes for a face value of $1 per note within 12 months.
The notes will pay 10 percent per annum and on maturity can be redeemed for cash at their face value of $1 per note or converted to shares at 60c per share.
Pulse said it needs a further $3.5 million to fully implement its business plan in the next one to two years. The note offer is a facility to meet these requirements. In addition, Pulse intends to offer a share purchase plan to all shareholders before the end of this year.
The company is using a procedure for the note offer which does not require shareholder approval. NZX has granted a waiver from obtaining shareholder approval under the related party transaction restrictions.
Pulse said it has received non-binding expressions of interest from three potential investors to subscribe for at least $100,000 of notes each. These potential investors are chief executive and director Dene Biddlecombe, and two existing shareholders of Pulse being interests associated with Robert Famularo and interests associated with John Philpott.
Pulse Energy currently has 10,018 customers. It needs new capital when increasing customers for smart meter technology and working capital.
A previous $4m convertible note programme only raised $1.62m.
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