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PS&C Limited (ASX:PSZ) is into digital consultations. The company operates in three segments namely People, Security, and Communications and provides information and communication technology services.
On 4 February 2019, the company announced that it has successfully acquired a 100% interest in Artisan Consulting Pty Ltd via a Share Sale and Purchase Agreement. Artisan focuses on salesforce solutions and is currently a Salesforce Silver Tier System Implementation and Consulting Partner, which caters the mid-large enterprise.
This is a strategic acquisition that strengthens the companyâs current salesforce capabilities by adding key technical resources that will enable PSC to compete for larger projects moving forward. The acquisition will be made with a mix of cash and shares in PSC with the acquisition forecast to provide a small contribution to PSCâs FY19 results.
The company has also announced that it is anticipating issuing up to 2,500,000 Unsecured Redeemable Convertible Notes, at an issue price of AU$1.00 per individual Note, to raise $2,500,000 in tranches to 28 February 2019. PSC said that the first tranche totaling 1,000,000 Notes which will raise $1,000,000 has been committed with funds expected to be cleared in its bank account within the next seven days. The first tranche includes money raised from existing shareholders, including commitments from the Directors of the company. The funds raised will be used in part to fund the acquisition of Artisan and working capital to fund organic growth initiatives and increase the flexibility of the company to take advantage of additional opportunities that may arise.
The company confirms that it is continuing discussions with several existing shareholders and other sophisticated investors in accordance to Section 708A of the Corporations Act and anticipates making further announcements in relation to the issuance of further Notes as those discussions materialize.
The Board considers the terms of the Notes are commercially reasonable and at armâs length to the participating Directors and as such shareholder approval is not required under Chapter 2E of the Corporations Act (Related Party Transactions). The conversion price of the Notes, i.e. AU$0.15, is 23% higher than the closing price of PSC shares trading on the ASX as at 1 February 2019.
The company on 21 December 2018, had reported the notice for change of interest of its substantial shareholder. It stated that Laura Catherine Gowans as per the new interest will hold 7,703,941 ordinary shares with a consideration value of $1,170,999.03, in the company.
Now let us quickly have a look at PS&C Limitedâs stock performance and the return it has posted over the last few months. The stock last traded at a price of $0.115 and increased by almost 4.545% during the dayâs trade, with a market capitalization of circa $26.75 million. The stock has yielded a negative YTD return of 18.52% and posted a negative return of 37.14% over the last six months period. It has a 52-week high price of $0.230 and a 52-week low of $0.10, with an average volume of 77,531 approximately.
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