Plus SMS gets a welcome message from investor

Troubled text message marketer Plus SMS Holdings plans to raise more capital and list in the UK.

The company has yet to earn any revenue and lost more than half its market value this month after admitting to incorrect statements.

The board of the NZX-listed but operationally UK-based firm is supporting in principle a plan by shareholder Hewon Capital to work towards a London Stock Exchange AIM listing by January 31, or an equivalent international exchange.

Hewon, a Jersey-based investment firm, also intended to underwrite the raising of up to $6 million of new capital in conjunction with the listing, the board said.

The share price of Plus SMS was down 4c yesterday to 14c, before the company announced the rebuilding proposal.

The company, which posted a $4.5 million loss for year ending March 31, plans to enable companies to run global text message campaigns and competitions using single codes.

Plus SMS joined the NZX Alternative Market last July via a back-door listing using the shell of failed retailer RetailX.

The share price had been worth 82c at one point last year giving the company a market capitalisation of more than $250 million.

However, this month the share price collapsed after Plus SMS admitted issuing incorrect statements - leading to a Securities Commission inquiry - and both founder Garry Donoghue and chairman Jim Bracknell resigned.

Plus SMS's new chairman George Brooks said the proposal gave the company a solid foundation for growth and would put it back on track to deliver shareholder expectations.

"Quick action is needed to restore confidence in the company and its shares," Brooks said. "The Hewon proposal offers us the right opportunities, right now."

In May Hewon paid $5 million for 10 million shares at 50c each.

Without the support of the new management team and the advisory board it would be difficult for Plus SMS to regain momentum and realise its potential, Brooks said.

The advisory board included Hewon chairman and former Telepiu Italia chief executive Rob Hersov, former chief executive of Telecom Italia Mobile Marco de Benedetti and former chairman and CEO of TI Group Sir Christopher Lewinton.

Chief executive Christopher Tiensch said listing the company on the AIM market was key to future growth.

"The credentials and expertise of the Advisory Board, and the newly established management team, will be critical to achieving a successful AIM listing and to supporting our longer term business plan," Tiensch said.

The Plus SMS board was seeking further advice on the proposal before presenting it to shareholders at a special meeting.

Plus SMS Holdings

* July 2005: NZX back-door listing using failed RetailX.

* May 2006: Jersey-based Hewon Capital invests $5 million for 2.9 per cent stake.

* Sept 2006: Admits incorrect statements, founder resigns, share price collapses.

* Sept 2006: Hewon proposes UK listing and new capital raising.