Pulse Investments opts for APO to raise capital

• March 13 2020
• http://www.jamaicaobserver.com/business-report/pulse-investments-opts-for-apo-to-raise-capital_189421

Pulse Investments has decided to go the route of an additional public offer (APO) of shares, as it seeks to raise additional capital to fund its expansion plan.

The lifestyle, real estate and media company led by businessman, Kingsley Cooper was considering the option of a renounceable rights issue to raise funds for its expansion plan. However, with the announcement of the APO, it is clear that the renounceable rights issue option to raise funds will no longer be pursued.

The decision to go the route of an APO to raise equity to finance new projects and to expand existing ones was approved at Monday's board meeting. At that meeting the board passed two resolutions, which authorises the management to move to put into effect the APO, which was approved by shareholders at the company's annual general meeting held on February 18, 2020.

The other resolution approved mandates the management to determine the quantum to be raised along with all relevant terms and conditions in consultation with its financial advisors, brokers, arrangers and other relevant advisors.

Wednesday's announcement of the approval of the board to go the route of an APO come days after Pulse announced that it will be undergoing a stock split, as the company prepares to raise capital to fund its expansion plans, which includes two overseas acquisitions and a real estate investment.

The board of Pulse has already given the green light for the stock split on the basis that three additional shares be issued to shareholders for every share currently held by them in the company. At a board meeting held on Wednesday, February 26, it was agreed that the record date for the stock split will be March 16, 2020.

A stock split is a decision by a company's board of directors to increase the number of shares that are outstanding by issuing more shares to current shareholders. The primary motive is to make shares seem more affordable to small investors even though the underlying value of the company will not change.