Rockpool is raising £1.5mln in its IPO, issuing shares at 10p each, and it is expected that the consideration for a future acquisition will be paid for via a further new issue of equity.
The Special Purpose Acquisition Company (or SPAC) want to pick up a Northern Ireland based business that has “an international outlook” but not currently able to access growth capital needed to achieve its ‘full potential’.
In a stock market statement, Rockpool said it expects to complete an acquisition, which would be classed as a reverse takeover, within twelve months of its shares being admitted to the London exchange. That said, it noted that there are “no specific targets under consideration yet”.
Targets acquisition of up to £20mln
According to Rockpool, however, it is likely that it will target acquisition of up to £20mln whereby there would be growth prospects that could benefit from an injection of at least £1mln of additional capital.
Detailing its acquisitive plans, the company added: “Rockpool's initial efforts in identifying prospective target companies or businesses will be primarily focused in Northern Ireland as the Directors believe there are a number of suitable potential targets in that country;
“Rockpool will strive to avoid involving any cash element and instead seek to acquire the target by way of issuing shares, convertible loan notes or a mixture of both to the existing shareholders.”
Mike Irvine, the company’s co-founder, said: “Our decision to list on the Main Market of the London Stock Exchange makes both strategic and commercial sense as we believe that there are a number of excellent Northern Ireland based companies that would benefit from access to the deeper pools of capital that a listing on London's most prestigious market provides.
"The Northern Ireland business community has a strong heritage of entrepreneurship but has not necessarily taken full advantage of the public markets.
“We see Rockpool as an opportunity to start to address that situation."