Share Search
Visit the Share Search
LightwaveRF seeking suitors as a way to progress it strategy
18th Nov 2019 13:51
(Sharecast News) - Smart home solutions provider LightwaveRF announced on Monday that, to further accelerate its development, it has decided to conduct a formal review of its various strategic options, including a potential sale of the company by way of a 'formal sale process'.
The AIM-traded firm said it has appointed BDO as its financial adviser for the purpose of the strategic review.
Its board said it considered that the company was "well-positioned" as the only UK company offering fully-integrated products that enabled in-home control, monitoring and automation of lighting, heating and power.
The company added that it had made good progress in sales growth, and establishing multiple channels to market and commercial partnerships with globally recognised brands.
"The board also believes that the company would benefit from additional finance from a financial or larger corporate partner in order to support the board's growth plan," LightwaveRF's directors said in their statement.
"Whilst the company has been able to raise equity finance to support its development, the board believes that the recent fundraisings have taken up more of management's time than desired, relative to the amounts raised and this has adversely impacted growth.
"The amount of new money raised has also meant that certain significant shareholders have been restricted in the amounts they could invest."
LightwaveRF said that, with the support of its existing shareholders, it wished to take a wider approach to explore the alternatives for raising additional investment from new investors, to assist in accelerating the growth of the business.
The board said it would prefer a minority investment, with the scope for existing investors to participate, but added that it recognised that given the current market capitalisation of the company, any meaningful investment could trigger the requirement for a whitewash under rule nine of the Takeover Code.
In addition, it said an investor might be prepared to invest in the company in its current form, or the company might need to seek the support of its shareholders for the cancellation of the admission of its shares to trading on AIM in order to accommodate a significant investment.
Alternatively, an investor could seek a controlling interest in the company.
"Following this announcement, the company is now considered to be in an 'offer period' as defined in the code, and the dealing disclosure requirements will apply," the board added.
"Shareholders are advised that this is not a firm intention to make an offer under rule 2.7 of the code, and there can be no certainty that any offers will be made as a result of the formal sale process, that any sale or other transaction will be concluded nor as to the terms on which any offer or other transaction may be made."
At 1210 GMT, shares in LightwaveRF were down 7.49% at 3.7p.
The AIM-traded firm said it has appointed BDO as its financial adviser for the purpose of the strategic review.
Its board said it considered that the company was "well-positioned" as the only UK company offering fully-integrated products that enabled in-home control, monitoring and automation of lighting, heating and power.
The company added that it had made good progress in sales growth, and establishing multiple channels to market and commercial partnerships with globally recognised brands.
"The board also believes that the company would benefit from additional finance from a financial or larger corporate partner in order to support the board's growth plan," LightwaveRF's directors said in their statement.
"Whilst the company has been able to raise equity finance to support its development, the board believes that the recent fundraisings have taken up more of management's time than desired, relative to the amounts raised and this has adversely impacted growth.
"The amount of new money raised has also meant that certain significant shareholders have been restricted in the amounts they could invest."
LightwaveRF said that, with the support of its existing shareholders, it wished to take a wider approach to explore the alternatives for raising additional investment from new investors, to assist in accelerating the growth of the business.
The board said it would prefer a minority investment, with the scope for existing investors to participate, but added that it recognised that given the current market capitalisation of the company, any meaningful investment could trigger the requirement for a whitewash under rule nine of the Takeover Code.
In addition, it said an investor might be prepared to invest in the company in its current form, or the company might need to seek the support of its shareholders for the cancellation of the admission of its shares to trading on AIM in order to accommodate a significant investment.
Alternatively, an investor could seek a controlling interest in the company.
"Following this announcement, the company is now considered to be in an 'offer period' as defined in the code, and the dealing disclosure requirements will apply," the board added.
"Shareholders are advised that this is not a firm intention to make an offer under rule 2.7 of the code, and there can be no certainty that any offers will be made as a result of the formal sale process, that any sale or other transaction will be concluded nor as to the terms on which any offer or other transaction may be made."
At 1210 GMT, shares in LightwaveRF were down 7.49% at 3.7p.