REG - Caledonian Holdings - Further investment in AlbaCo Limited

Caledonian HoldingsAnnouncement

07/10/2025 07:00

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RNS Number : 2818C  Caledonian Holdings PLC  07 October 2025

The information contained within this announcement is deemed by the Company to
constitute inside information pursuant to Article 7 of EU Regulation 596/2014
as it forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 as amended.

 

 

7 October 2025

Caledonian Holdings plc

("Caledonian" or "the Company")

 

Further investment in AlbaCo Limited

Caledonian Holdings plc (AIM: CHP), the investment company focused on building
an integrated portfolio of leading-edge technologies in the financial services
sector, is pleased to announce a further investment in AlbaCo Limited
("AlbaCo"), a UK banking platform applicant.

The Company has entered into a subscription agreement to commit up to
£1,000,000 of funding to AlbaCo as a prepayment towards Caledonian's
participation in AlbaCo's forthcoming authorisation capital raise. This
funding provides near-term working capital for AlbaCo while ensuring
Caledonian's position in the wider capitalisation process. The investment has
been made on commercial terms that include warrant participation and
associated fees, with the warrants to be issued and fees paid being
conditional on, inter alia, completion of AlbaCo's regulatory capital
fundraising. This is consistent with Caledonian's strategy of securing
attractive economics for its shareholders.

£500,000 has been drawn down immediately by AlbaCo and has been satisfied by
Caledonian from the Company's existing cash resources.

This funding follows on from a £120,000 prepayment that was provided by
Caledonian to AlbaCo in September 2025. This earlier investment will be
restated on the same commercial terms as today's prepayment, ensuring
consistency across the Company's support for AlbaCo's growth plans.

Caledonian has an existing 3.65 per cent. interest in AlbaCo's current issued
share capital following on from the initial £1 million investment made in
cash and shares earlier this year.

Jim McColl, Executive Director of Caledonian Holdings plc, commented:

"We are pleased to provide this additional investment into AlbaCo at a pivotal
point in its development. The working capital funding gives AlbaCo the time
and flexibility it needs to finalise its institutional fundraising, while also
strengthening our position as a supportive strategic shareholder. We believe
AlbaCo has the potential to become an important new entrant in UK banking, and
this investment demonstrates our continued commitment to its success."

Outlook

The Board believes this further investment into AlbaCo represents an
attractive opportunity to enhance Caledonian's exposure to the UK financial
services sector, in line with its stated strategy. The Company looks forward
to updating shareholders as AlbaCo progresses towards securing its
unconditional banking licence and completing its fundraising.

Further to the announcements released by the Company on 12 September 2025 and
19 September 2025, Caledonian is also continuing discussions of its own with
potential funding sources which, if successful, would enable Caledonian to
participate further in AlbaCo's regulatory capital fundraising. Further
updates will be released at the appropriate time.

Information on AlbaCo

AlbaCo aims to be a new bank with a clear vision and purpose - to support
small and medium-sized businesses as they develop their aspirations, grow and
realise their potential. AlbaCo aims to help SMEs grow by applying specialist
expertise and insight while forming strong and lasting relationships with its
customers. AlbaCo is not yet open to trade pending full regulatory banking
approval.

For the year ended 29 February 2024, AlbaCo reported a loss after tax of
approximately £8.96 million. As at 29 February 2024, AlbaCo's net assets were
£6.31 million.

For further information, see albacoltd.co.uk (https://www.albacoltd.co.uk/) .

 

For further information, please contact:

 Caledonian Holdings plc                       Tel: +44 (0) 7950 389469

 Jim McColl, Executive Director

 Brent Fitzpatrick, Non-Executive Chairman

 Allenby Capital Limited (Nominated Adviser)   Tel: +44 (0) 20 3328 5656
 Nick Athanas / Piers Shimwell

 Peterhouse Capital Limited (Broker)           Tel: +44 (0) 20 7469 0930

 

 

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