Pulse Group decided to join Plus-quoted instead of Aim.
The online market research panel operator found it difficult to raise money on Aim at the end of 2007 but Pulse didn‘t let that stop it gaining a quotation on Plus-quoted in June. Pulse could use much of the work done on the Aim flotation for the Plus-quoted document.
Aim-quoted, Plus-focused investment company Evolve Capital provided a £400,000 convertible loan to Pulse, which it converted at 4.5p a share. When Pulse floated Evolve subscribed another £100,000 for shares at 10p each.
Edward Vandyk and Oliver Cooke of Pulse’s corporate adviser Whim Gully Capital are also directors of Evolve Capital. The flotation document says that they were not involved in Evolve’s decision to invest in Pulse. Since Pulse joined Plus-quoted on 27 June Evolve has sold 3.17m shares. Evolve still owns 7.3%of Pulse.
The money raised went towards the costs of the Plus-quoted flotation and the costs of the previous attempt to float on Aim. The remaining £180,000 is being invested in growing the business.
At 12.25p a share, Pulse is valued at £11.2m. There is normally at least one trade in the shares each day so it is one of the more consistently active shares on Plus-quoted.
It is not surprising that, at the moment, even a profitable, cash generative business, such as Pulse, found it difficult to raise the cash it wanted on Aim. Joining Plus-quoted enables it to use its quotation to finance organic and acquisitive growth. Pulse hasn’t raised as much as it originally wanted to but it will be able to come back to the market at a later date if it needs more cash.
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