REG - Onward Opportunities - Issue of Equity

Onward OpportunitiesAnnouncement

04/10/2023 07:15

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RNS Number : 5927O  Onward Opportunities Limited  04 October 2023

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. Upon the publication of this announcement
via a Regulatory Information Service, this inside information is now
considered to be in the public domain.

 

4 October 2023

 

Onward Opportunities Limited

("Onward Opportunities" or the "Company")

 

Issue of Equity

 

Subscription to raise £3.4 million

 

Onward Opportunities Limited, the UK smaller company focussed investment
company, is pleased to announce that in response to investor demand it has
raised gross proceeds of £3.4 million by way of a direct subscription (the
"Subscription") by new and existing investors with the Company for 3,277,280
new ordinary shares (the "Subscription Shares") at a price of 102.5 pence per
new ordinary share (the "Subscription Price").

 

The Subscription Price represents a premium of 1.5 per cent. to the Company's
unaudited net asset value per ordinary share as at 15 September 2023 of 101
pence per existing ordinary share and a premium of 6.3 per cent. to the
Company's unaudited NAV per share of 96.4 pence per existing ordinary share as
at the Company's half year on 30 June 2023.

 

The Board and Portfolio Manager continue to believe that there are compelling
structural factors underpinning the investment strategy and that prevailing
market conditions create an environment in which the Portfolio Manager has the
ability to generate aggregated portfolio returns in excess of 15 per cent. per
annum over the long term. The Board is delighted to welcome a number of new
institutions to the share register as well as to have received ongoing support
from Investment Committee members and directors. The net proceeds of the
Subscription of approximately £3.4 million will provide the Company with
additional resources with which to pursue its stated investing policy.

Onward Opportunities was launched on 30 March 2023 and was the first
investment company to list on AIM since November 2021. The Company recently
reported half year results to 30 June 2023, noting gross portfolio IRR
(annualised return) of 20.7% to the end of August.

 

Andrew Henton, Non-Executive Chairman of Onward Opportunities, commented:

 

"Onward Opportunities launched at a time when the Portfolio Manager believed
smaller growth companies in the UK were undervalued by the market.  Whilst we
believe this remains the case, the Company's NAV performance since launch
evidences both the Manager's capability in identifying attractive companies
and growing investor recognition of hidden value.

 

The new money raised will increase the opportunity set for the Company.  We
hope to continue tapping investor demand for new shares as the Company
develops over coming months and years."

 

Laurence Hulse, Investment Director of Dowgate Wealth Limited, commented:

 

"We are pleased to see early recognition of the investment opportunity we are
capturing with new investor interest in the company at this early stage,
allowing us to grow the business by c.25% after 6 months of operations.
Markets remain fickle, but this is exactly why it is so important to be able
to raise additional firepower - the drivers of a tough fundraising environment
are the same reasons why now makes for an attractive buying opportunity in UK
equities."

 

Application has been made for the Subscription Shares to be admitted to
trading on AIM ("Admission"). Admission is expected to occur at 8.00 a.m. on
6(th) October 2023 and the Subscription Shares will, on issue, rank pari passu
in all respects with the Company's existing ordinary shares.

 

On Admission, the Company will have a total of 16,027,290 ordinary shares in
issue. No ordinary shares are held in treasury. The figure of 16,027,290 may
be used by the Company's shareholders as the denominator in the calculations
by which they will determine if they are required to notify their interest in,
or a change to their interest in, the Company under the Financial Conduct
Authority's Disclosure Guidance and Transparency Rules.

 

Director and Related Party Participation in the Subscription

 

The Directors, PDMRs and Persons Closely Associated ("PCAs") have subscribed
for Subscription Shares in the amounts set out below.

 

 Director       Number of existing ordinary shares  %                                           Number of Subscription Shares subscribed for  Ordinary shares held on Admission  %

                                                    of existing issued ordinary share capital                                                                                    of enlarged issued ordinary share capital on Admission

 Henry Freeman  0                                   0.0                                         15,000                                        15,000                             0.1
 Susan Norman   20,000                              0.2                                         4,878((1))                                    24,878                             0.2

((1)) 4,878 Subscription Shares subscribed for pursuant to the Subscription by
Adrian Norman, spouse and PCA of Susan Norman, a Non-Executive Director.

 

In addition, Dowgate Wealth Limited (the "Portfolio Manager"), the Company's
Portfolio Manager and a Substantial Shareholder of the Company, and its
affiliates have subscribed for 2,138,134 Subscription Shares. As a result, and
on Admission, the members of the Concert Party in the Company, details of
which were disclosed in full in the Company's AIM Admission Document dated 23
March 2023, will collectively hold an aggregate of 9,008,043 ordinary shares
in the Company, representing 56.2 per cent. of the Company's enlarged issued
ordinary share capital.

 

The Directors of the Company and the Portfolio Manager are each deemed related
parties of the Company pursuant to the AIM Rules for Companies ("AIM Rules")
and, as a result, the participation of the Directors, their PCAs and the
Portfolio Manager in the Subscription is deemed to be a related party
transaction under Rule 13 of the AIM Rules. The independent directors of the
Company, being Andrew Henton and Luke Allen consider, having consulted with
the Company's nominated adviser, that the terms of the participation of the
Directors, their PCAs and the Portfolio Manager in the Subscription are fair
and reasonable insofar as shareholders are concerned.

 

The notifications below, provided in accordance with the UK Market Abuse
Regulation, provide further details.

 

Change of Name of Nominated Adviser and Broker

 

The Company also announces that its Nominated Adviser and Broker has changed
its name to Cavendish Securities plc following completion of its own corporate
merger.

 

FOR FURTHER ENQUIRIES:

 

 Onward Opportunities Limited                                   Via Share Communications

 Andrew Henton, Chairman

 Dowgate Wealth Limited (Portfolio Manager)                     Via Share Communications

 Laurence Hulse, Investment Director

 Cavendish Securities plc (Nominated Adviser and Joint Broker)  Tel: +44 (0) 207 220 0500

 Ben Jeynes / Camilla Hume / Dan Hodkinson / Hamish Waller

 Michael Johnson / George Budd (Sales)

 Dowgate Capital Limited (Joint Broker)                         Tel: +44 (0)12 9351 7744

 Russell Cooke / Nicholas Chambers

 Share Communications (PR Adviser)                              Tel: +44 (0)20 7071 3932

 Zoe Powell / Eleanor Mitchell                                  team@sharecomms.co.uk

To find out more, please visit: www.onwardopportunities.co.uk
(http://www.onwardopportunities.co.uk)

 

 

The following notifications are intended to satisfy the Company's obligations
under Article 19(3) of the Market Abuse Regulation.

 

 1   Details of the person discharging managerial responsibilities/person closely
     associated
 a)  Name                                                                            1.    Henry Freeman

                                                                                     2.    Adrian Norman

 2   Reason for notification
 a)  Position/Status                                                                 1.     Non-Executive Director

                                                                                     2.     PCA of Susan Norman, Non-Executive Director

 b)  Initial notification/amendment                                                  Initial notification

 3   Details of the issuer, emission allowance market participant, auction
     platform, auctioneer or auction monitor
 a)  Name                                                                            Onward Opportunities Limited

 b)  LEI                                                                             213800OP1Q2B3EO9LE92
 4   Details of the transaction(s): section to be repeated for (i) each type of
     instrument; (ii) each type of transaction; (iii) each date; and (iv) each
     place where transactions have been conducted

 a)  Description of the financial instrument, type of instrument and identification  Ordinary shares of no par value
     code

                                                                                     ISIN: GG00BMZR1514

 b)  Nature of transaction                                                           Subscription for new ordinary shares

 c)  Price(s) and volume(s)                                                           Price(s)        Volume(s)
                                                                                     1.    102.5      1.      15,000

                                                                                     2.    102.5      2.      4,878

 d)  Aggregated information                                                           n/a

 e)  Date of transaction                                                             1.    4 October 2023

                                                                                     2.    4 October 2023

 f)  Place of transaction                                                            Outside of a trading venue

d)

Aggregated information

 n/a

 

e)

Date of transaction

1.    4 October 2023

2.    4 October 2023

 

f)

Place of transaction

Outside of a trading venue

 

 

 

 

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