There should be news about potential standard list shell Insight Business Support during this week. The strategy is to acquire a company in the support services sector.

The offer for subscription was set to close at the end of last week. Insight wanted to raise up to £1.5m at 2p a share, with a minimum subscription level of £700,000. This is not an easy time to raise cash, though.

The offer was extended from 19 March to 26 March. The plan was for the shares to start trading on 2 April.

The financial adviser is The Share Ltd, which is authorised by the FCA. It is headed by Hoodless Brennan founder Geoffrey Hoodless.

The founder shareholders paid 1p a share, raising £85,000. The directors, Jon Pither, Gordon Harvey and Adam Rhodes, each acquired 1.5 million shares. John Green and Pitchcroft Capital Ltd also each bought 1.5 million shares.

The directors will not be paid a fee for their services, although they will receive expenses. They will resign when an acquisition is made.

Acquisition strategy

An acquisition target is required to be a platform for scaling up a business with strong cash flow. It also needs to have a sustainable competitive advantage.

The minimum subscription funds will be enough to undertake the search and due diligence on a target. If an acquisition has not been secured in two years then shareholders will be able to vote on a resolution to wind up the company.

There is no certainty that the offer will be successful, and it will be a positive for the stockmarket if it does.