Executive search firm Connecting Excellence Group (XCE) is planning to join Aquis and raise cash to invest in its Bitcoin strategy. A placing and subscription will raise at least £1.5m and small investors are being given the chance to take part in a WRAP retail offer of up to £250,000 at 2.1p/share.
Leeds-based XCE is an international executive search company which owns the Spencer Riley brand. Core sectors include engineering, life sciences, automation, logistics and professional services. The business has space to grow into and may make acquisitions to increase scale.
In the 17 months to June 2024, Spencer Riley revenues were £2.23m and pre-tax profit of £225,000. The majority of revenues are generated by overseas clients, and the business has been profitable for nine years.
XCE has started an operation focused on recruiting Bitcoin experts for companies seeking to commence a Bitcoin treasury strategy or for Bitcoin businesses.
The Bitcoin treasury strategy is designed to help with attracting experienced sales personnel and teams for the business with performance linked share option incentives related to revenues and cash flow. This could take the recruitment business into new sectors.
The company started buying Bitcoin in 2021 and currently owns 9.27 and an average price of £37,500 each. The cash will enable many more to be purchased. Management plans to spend a minimum of £1.3m on Bitcoin. Surplus cash generated by the business will also go towards buying Bitcoin.
Chief executive and founder Scott Ellam will continue to be the largest shareholder.
Investors can apply for shares via Interactive Investor, AJ Bell and Hargreaves Lansdown, while retail brokers can contact WRAP@Winterflood.com.
The offer closes at 4.30pm on 4 December. The result should be announced by 9 December, which is the date of admission to Aquis. The minimum subscription is £500.