REG - Caledonian Holdings - Further investment in AlbaCo Limited

Caledonian HoldingsAnnouncement

18/12/2025 15:45

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20251218:nRSR1786Ma&default-theme=true

RNS Number : 1786M  Caledonian Holdings PLC  18 December 2025

18 December 2025

Caledonian Holdings plc

("Caledonian" or the "Company")

 Further investment in AlbaCo Limited

Caledonian Holdings plc (AIM: CHP), the financial services-focused investing
company, is pleased to announce that it has entered into an agreement to
provide a further £450,000 of short-term funding support to existing investee
company, AlbaCo Limited ("Alba"), to support the business through the ongoing
banking licence assessment process. This funding is in addition to the £1.0
million investment in Alba announced by the Company on 7 October 2025 and
reflects Caledonian's continued conviction in Alba as a core portfolio
investment.

Funding structure

The Company has today entered into a subscription agreement to commit
£450,000 of funding to Alba as a prepayment towards Caledonian's
participation in Alba's forthcoming regulatory capital fundraising. The funds
will be drawn down by Alba immediately and satisfied from the Company's
existing cash resources.

The facility will be provided on substantially the same terms as Caledonian's
previous short-term support to Alba announced on 7 October 2025, with an
accompanying 25% fee payable to Caledonian in cash or new ordinary shares in
Alba upon completion of Alba's regulatory capital fundraising reflective of
the nature and duration of the facility. Warrants will also be granted to
Caledonian conditional on, inter alia, completion of Alba's regulatory capital
fundraising.

Caledonian currently holds 1,500,000 shares in Alba which is equivalent to
5.47% of Alba's existing issued share capital.

Strategic Rationale

Caledonian views Alba as a core long-term investment and continues to support
the development of a modern, digitally-enabled UK challenger bank. The
provision of this short-term funding:

·      supports Alba's operational continuity during the ongoing banking
licence assessment process;

·      enables the Alba business to maintain momentum across regulatory,
operational and commercial workstreams; and

·      reinforces Caledonian's commitment to Alba as it progresses
towards potential authorisation and launch.

There can be no certainty that a banking licence will be granted, which
remains subject to regulatory approval.

Keith Barclay, Investment Director, commented:

"This additional support reflects our continued confidence in Alba and the
progress made across governance, systems and regulatory engagement. We believe
it is appropriate to ensure the business remains well capitalised as it
advances through the licensing process."

Jim McColl, Executive Director, added:

"Alba has made substantial progress this year in strengthening its business
model, governance and funding position. This further support from Caledonian
reflects our strong belief in the long-term opportunity and the high-quality
team leading the Bank."

Information on Alba

Alba 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. Alba aims to help SMEs grow by applying specialist
expertise and insight while forming strong and lasting relationships with its
customers. Alba is not yet open to trade pending full regulatory banking
approval.

For the year ended 29 February 2024, Alba reported a loss after tax of
approximately £8.96 million. As at 29 February 2024, Alba'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

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

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDEVLFFELLXFBZ



            Copyright 2019 Regulatory News Service, all rights reserved