John Gunn, the former British & Commonwealth finance group chief who now backs ‘micro-cap’ start-up concerns, is proposing to tap the AIM market for up to £8 million with a new environmentally-oriented shell company, Vert-ECO.
John Gunn, the former British & Commonwealth finance group chief who now backs ‘micro-cap’ start-up concerns, is proposing to tap the AIM market for up to £8 million with a new environmentally-oriented shell company, Vert-ECO.
His private investment group Ludgate has earmarked next month for the float of this new concern, which specialises in cleaning up industrial waste, in particular the toxic residue left by the incineration of oils from power transformers.
With pre-float funds being raised at 5p and broker Durlacher poised to handle the float, Ludgate is likely to retain a big chunk of Vert-ECO. Its launch will be one of a several moves by which Gunn intends to put Ludgate on the map.
He is currently helping to steer Toronto-listed Azure Dynamics, maker of equipment for electric taxicabs, onto AIM. He is also working to introduce Sydney-quoted eServ, producer of ‘intelligent network’ software enabling telephone companies to offer customers premium services, onto London’s junior market.
eServ is not raising money (because it already has £5.4 million cash, 56 per cent of its market value) and the hope is that it might attract a bid. Gunn, who in recent years has helped float companies such as Turbo Genset and Pursuit Dynamics, is thought to be contemplating yet another software company deal in the near future.
These deals are only one part of Gunn’s strategy for Ludgate, where he has agreed to buy out his minority partners. As revealed in the latest issue of Business XL magazine, Ludgate is talking to serial investor Mark Horrocks about building Ludgate into a mini-merchant bank for small companies and becoming an AIM nominated adviser.
Ludgate wants to join forces with Horrocks in a fund called Intrinsic Value and achieve £100 million under management in two years. Ludgate contemplates a £1 million fundraising soon, followed by a larger issue in due course.
1/8/04
