Cash Box Placings

The current difficulties experienced by companies raising debt finance is making the use of Jersey Cash Box companies increasingly popular as a fast and efficient way of enabling a United Kingdom public company to raise equity capital for an acquisition through a placing of its shares. In January 2009 five Cash Box structure rights issue or placings were undertaken in the United Kingdom and in the first two weeks of February, two further Cash Box structures were utilised.

Generally, under a typical Cash Box structure a listed company will receive the entire issued share capital of a Jersey special purpose vehicle whose only asset is its cash reserves by way of subscription for ordinary shares in the listed company.