London, UK, Apr. 1--Floors 2 Go announces Thursday its flotation on the Alternative Investment Market of the London Stock Exchange ("AIM") via an accelerated IPO.
The company is one of the largest specialist multi-sale retailer of hardwood, engineered and laminate flooring products and accessories in the U.K.
Floors 2 Go's success has been driven by the retail growth in the laminate and wood flooring market with the product taking market share from carpets assisted by the high media profiles of television makeover shows where laminated wood flooring features prominently.
Smart Motive was formed in December 2003 as a cash shell to attract companies and businesses which are seeking admission to trading on AIM. By a prospectus dated Jan. 29, 2004, the company raised GBP3.5 million before expenses by way of an offer for subscription which closed on Mar. 9.
On Mar. 24, the company raised a further GBP4.5 million before expenses by way of a placing of Ordinary Shares conditional upon the Acquisition.
The funds were raised in order to complete the due diligence on potential target businesses, to fund the Acquisition and as working capital for the company.
In assessing potential acquisition and investment opportunities, the Directors have concentrated on companies and businesses which they consider have a good management team and are operating in a market which has growth potential. The main criterion that the Directors have applied in identifying potential targets is to focus on businesses which have the capability to grow rapidly.
On Mar. 25, Smart Motive acquired the entire issued share capital of Anglo Baltic which in turn owns the entire issued share capital of Floors 2 Go. To fund the expenses of the Acquisition and the Proposals the company has raised GBP805,000 by way of a placing of up to 1,677,083 Placing Shares and has admitted the entire issued share capital of the company to trading on AIM.
Sales at Floors 2 Go have grown strongly in the two months ended Feb. 29, being considerably ahead of budget with like for like sales in February 2004 some 45% ahead on last year.
Four new stores have been opened since Dec. 31, 2003 and 14 new staff employed. The Directors believe that there are strong growth prospects for the U.K. flooring market and look forward to the future with confidence.
The company has raised GBP805,000 before expenses, by way of the placing of up to 1,677,083 Placing Shares at 48 pence per share. The Placing Shares will represent approximately 1.28% of the company's issued share capital. The Placing Shares have been issued credited as fully paid and will rank pari passu in all respects with the Existing Ordinary Shares.
