Pulse Utilities raises $4 million
Pulse Utilities raises $4 million, locks in new shareholders
Dec. 18 (BusinessWire) - Pulse Utilities Ltd, the smart meter developer and start-up electricity retailer, has raised $4.256 million in private placements to 18 investors, including prominent racehorse owner Robert Famularo, CallPlus founder Malcolm Dick, and Buller Electricity Ltd.
Options issued to Famularo
and BEL with a total face value of $725,000 have also been
issued, 250,000 exercisable in nine months at 50 cents each
for Famularo, and one million over the next three years in
even tranches at 50c, 60c, and 70c for BEL.
NZAX-listed Pulse plans to launch electricity retailing
on the West Coast in the Buller company's network area, and
the company hopes BEL will be able to enlarge its holding
past the current 10%. Electricity reforms lifting
restrictions on network company involvement in electricity
retailing are expected next year. Such changes would allow
the BEL options to be exercised. In the meantime, BEL will
have the right not to be diluted below 10%.
Pulse
and BEL will also seek a Commerce Commission waiver to allow
a BEL nominee to be appointed to the board.
The
company told the NZX in a statement that it had placed, as
intended, 8 million 50 cent shares with private investors,
including 1 million shares taken up by the chief executive,
Dene Biddlecombe. Further applications for 513,000 shares
at 50 cents each would also be issued, to exceed the $4
million capital sought by $256,500.
The company will
now seek a permanent chairman.
"Our growth has been
constrained by a lack of capital," the company said in its
statement. "We can now enter 2010 with confidence that we
can implement our business plan and deliver value to both
our shareholders and customers."
Further funds would
be required to meet business objectives, and this would be
met in the future by a combination of the outstanding
options and debt funding.
"Debt funding will become
increasingly logical and obtainable as Pulse gains traction
and success in the medium term."
Famularo and BEL
stumped up $1.2 million respectively for today's
capital-raising announcements, while Dick contributed
$500,000.
(BusinessWire) 16:53:11