REG - Alpha Growth PLC - Further Regarding Havelet Acquisition

Alpha GrowthAnnouncement

12/12/2022 07:00

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RNS Number : 2875J  Alpha Growth PLC  12 December 2022

The information communicated within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulation (EU) No.
596/2014 as it forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 (as amended). Upon the publication of this announcement,
this inside information is now considered to be in the public domain.

 

 

Alpha Growth plc

("Alpha" or the "Company")

Acquisition of Havelet Assignment Company completed

 

Alpha Growth plc (LSE: ALGW and OTCQB: ALPGF), a leading financial services
specialist in the growing life insurance and longevity asset class, is pleased
to announce that it has now completed its previously announced (17 November
2022) acquisition of Havelet Assignment Company Limited ("Havelet"), a
Barbados based financial services company specialising in settlement
assignments (the "Acquisition").

Key points on the Acquisition:

·    The Acquisition adds circa $9 million AUM to Alpha

·    Havelet generates revenue on a fee applied to AUM and is cash flow
positive and profitable

·    Alpha intends to increase marketing of Havelet services to the legal
community with a view to materially increasing AUM

·  The Acquisition provides Alpha Growth with additional cross-sell
opportunities across its portfolio of companies, thereby further increasing
AUM

 

Havelet, established in 2012, provides solutions to claimants and attorneys
who are awarded settlements through litigation to defer receipt of their
settlement on a pre-tax basis. As the settlement obligation is invested on a
pre-tax basis and grows on a tax-deferred basis, there is a much larger
capital base than if the settlement were received directly by the claimant,
taxed, and then invested. The net result is the potential for a higher
after-tax sum to be received by the claimant. Havelet is not subject to
withholding tax on dividends pursuant to Barbados-US taxation arrangements.

Havelet's clients can customise deferral and payment terms; receive lump sum
distributions; and select beneficiaries through annuities purchased and
managed by Havelet, typically ranging from 10 to 20 years depending upon the
age of the claimant and the settlement type. These annuities will be capable
of being issued by the Company's wholly-owned subsidiary Providence Life
Assurance Company ("Providence"), thereby increasing the cross-selling
opportunities across the Alpha group. The annuities aim to provide a long-term
independent stream of revenue for both Havelet and Providence.

 

Gobind Sahney, Executive Chairman of Alpha, commented: "I am very pleased to
announce the successful completion of the Havelet acquisition, and I wish to
thank all of the parties involved in the process. This was a small but
strategically important acquisition for Alpha and one which provides
significant opportunities to increase AUM both within the Havelet business and
also Providence, our Bermuda-based life insurance business.

"As we enter into the last few weeks of the year, I think it's important to
reflect on the significant progress that Alpha has made over the past couple
of years. We started January 2020 with $10 million AUM and one primary
offering, we finish 2022 with circa $700 million of AUM and multiple new
service offerings in both our life insurance and fund business segments. A
great foundation for continued growth."

** ENDS **

For more information, please visit www.algwplc.com (http://www.algwplc.com) or
contact the following:

 

 Alpha Growth plc                                   +44 (0) 20 3959 8600
 Gobind Sahney, Executive Chairman                  info@algwplc.com (mailto:info@algwplc.com)
                                                    +44 (0) 20 3328 5656

 Allenby Capital Limited
 Amrit Nahal (Sales and Corporate Broking)
 Nick Athanas / Piers Shimwell (Corporate Finance)
                                                    ir@algwplc.com (mailto:ir@algwplc.com)

 UK Investor Relations - Mark Treharne

 

About Alpha Growth plc

Specialist in Longevity Assets

Alpha Growth plc is a financial advisory business providing specialist
consultancy, advisory, and supplementary services to institutional and
qualified investors globally in the multi-billion dollar market of longevity
assets. Building on its well-established network, the Alpha Growth group has a
unique position in the longevity asset services and investment business, as a
listed entity with global reach. The group's strategy is to expand its
advisory and business services via acquisitions and joint ventures in the UK
and the US to attain commercial scale and provide holistic solutions to
alternative institutional investors who are in need of specialised skills and
unique access to deploy their financial resource in longevity assets.

Longevity Assets and Non-correlation

As a longevity asset, it is non-correlated to the real estate, equity capital
and commodity markets.  Its value is a function of time because as time
passes the value gets closer to the face value of the policy. Hence creating a
steady increase in the net asset value of the investment. This makes it highly
attractive to investors wishing to counteract volatility within an investment
portfolio and add yield.

Note: The Company only advises on and manages Longevity Assets that originate
in the USA where the structured and life settlement market is highly
regulated.

Forward Looking Statements Disclaimer

Certain statements, beliefs and opinions in this document are forward-looking,
which reflect the Company's or, as appropriate, the Company's directors'
current expectations and projections about future events. By their nature,
forward-looking statements involve a number of risks, uncertainties and
assumptions that could cause actual results or events to differ materially
from those expressed or implied by the forward-looking statements. These
risks, uncertainties and assumptions could adversely affect the outcome and
financial effects of the plans and events described herein. Forward-looking
statements contained in this document regarding past trends or activities
should not be taken as a representation that such trends or activities will
continue in the future. The Company does not undertake any obligation to
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise. You should not place undue reliance
on forward- looking statements, which speak only as of the date of this
document.  Readers should not treat the contents of this document as advice
relating to legal, taxation or investment matters, and are to make their own
assessments concerning these and other consequences, including the merits of
information and the risks.  Readers of this announcement are advised to
conduct their own due diligence and agree to be bound by the limitations of
this disclaimer.

Important Notice

The content of this announcement has not been approved by an authorised person
within the meaning of the Financial Services and Markets Act 2000 (FSMA). This
announcement has been issued by and is the sole responsibility of the Company.
The information in this announcement is subject to change.

 

 

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