Plus SMS seeks approval to raise up to $7.5 million

Plus SMS is seeking shareholder support to raise up to $7.5 million through the issue of convertible notes and a share placement.

The company said today it needed cash resources to fund its working capital and growth aspirations.

A special meeting to vote on resolutions connected to the funds raising is being held in Auckland on May 1.

The company is looking to raise up to $5m through the issue of convertible notes. Up to another $2.5m would be raised through a private share placement at a price of not less than 0.5c per share.

Plus SMS also wants shareholder ratification for the previous issue of equity securities issued for cash to a total of about $2.6m.

Another resolution seeks agreement from shareholders for the issue of up to 25m shares to directors and senior management at no cost.

Approval is also sought to issue about 52.2m shares with an issue price of 0.5c each to pay service providers.

Plus SMS said many positive things were happening for the company, with an increasing awareness of the commercial opportunities involved with SMS or texting.

The company was well placed to take advantage of those emerging opportunities because of its existing expertise and operations throughout Latin America.

- NZPA