REG - Onward Opportunities - Issue of Equity

Onward OpportunitiesAnnouncement

03/07/2024 07:00

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RNS Number : 8788U  Onward Opportunities Limited  03 July 2024

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.

 

3 July 2024

 

Onward Opportunities Limited

("Onward Opportunities" or the "Company")

 

Issue of Equity

 

Subscription to raise approximately £3.12 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 approximately £3.12 million by way of a direct
subscription (the "Subscription"), growing the Company by 15 per cent. The
Subscription has been made by new and existing investors with the Company for
2,606,733 new ordinary shares (the "Subscription Shares") at a price of 119.50
pence per new ordinary share (the "Subscription Price").

 

The Subscription Price represents a premium of 2.50 per cent. to the Company's
unaudited net asset value per ordinary share as at 24 June 2024 of 116.57
pence per existing ordinary share.

 

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 net proceeds of the Subscription of
approximately £3.03 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's unaudited
net asset value of 116.57 pence per existing ordinary share as at 24 June 2024
reflects investment performance (NAV growth) over a 12 month period of 20.90
per cent. (30 June 2023: 96.42 pence per ordinary share).

 

Laurence Hulse, Lead Fund Manager of Onward Opportunities Limited, commented:

 

"It augurs well that Onward Opportunities continues to deliver both its
investment strategy of absolute

investment returns and an ability to grow through new fundraises against a
backdrop of equity fund outflows. We are delighted to have been able to raise
additional capital for the third time in twelve months, being one of the very
few investment companies to do so on the UK market. This will enable the
Company to capitalise on an exciting pipeline of identified opportunities and
will be deployed into

new investments for the portfolio."

 

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
or around 4 July 2024 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 20,164,111 ordinary shares in
issue. No ordinary shares are held in treasury. The figure of 20,164,111 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.

 

Related Party Participation in the Subscription

 

Dowgate Wealth Limited (the "Portfolio Manager"), the Company's Portfolio
Manager and a Substantial Shareholder of the Company, and its affiliates have
subscribed for 1,041,858 Subscription Shares. As a result, and on Admission,
the members of the Concert Party in the Company will collectively hold an
aggregate of 10,769,484 ordinary shares in the Company, representing 53.4 per
cent. of the Company's enlarged issued ordinary share capital.

 

In addition, Susan Norman, a non-executive director of the Company, has
subscribed for an aggregate of 25,104 Subscription Shares at the Subscription
Price pursuant to the Subscription.

 

The Portfolio Manager is deemed a related party of the Company pursuant to the
AIM Rules for Companies (the "AIM Rules") and the Portfolio Manager's
participation in the Subscription constitutes a related party transaction
under Rule 13 of the AIM Rules. The directors of the Company consider, having
consulted with the Company's nominated adviser, that the Portfolio Manager's
participation in the Subscription is fair and reasonable insofar as
shareholders are concerned.

 

Susan Norman, a non-executive director of the Company is a related party of
the Company pursuant to the AIM Rules and her participation in the
Subscription also constitutes a related party transaction under Rule 13 of the
AIM Rules. The independent directors of the Company, namely Andrew Henton,
Henry Freeman and Luke Allen, consider, having consulted with the Company's
nominated adviser, that Susan Norman's participation in the Subscription is
fair and reasonable insofar as shareholders are concerned.

 

The notification below, provided in accordance with the UK Market Abuse
Regulation in respect of Susan Norman's participation in the Subscription,
provides further details.

 

FOR FURTHER ENQUIRIES:

 

 Onward Opportunities Limited                                            Tel: +44 (0)20 3416 9143

 Andrew Henton, Chairman                                                 hello@dowgate.co.uk

 Dowgate Wealth Limited (Portfolio Manager)                              Tel: +44 (0)20 3416 9143

 Laurence Hulse, Investment Director                                     hello@dowgate.co.uk

 Cavendish Capital Markets Limited (Nominated Adviser and Joint Broker)  Tel: +44 (0) 207 220 0500

 Ben Jeynes / Camilla Hume / Dan Hodkinson - Corporate Finance

 Michael Johnson / Chris West / Charlie Combe - Sales and ECM

 Dowgate Capital Limited (Joint Broker)                                  Tel: +44 (0)20 3903 7715

 Nicholas Chambers

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

 

 

Notification and public disclosure of transactions by persons discharging
managerial responsibilities and persons closely associated with them.

 

 Notification of a Transaction pursuant to Article 19(1) of Regulation (EU) No.
 596/2014
 1   Details of the person discharging managerial responsibilities/person closely
     associated
 a.  Name                                                         1.     Susan Norman

                                                                  2.     The Susan Norman 2010 Retirement Annuity Trust Scheme

                                                                  3.      Susan & Adrian Norman
 2   Reason for notification
 a.  Position/Status                                              1.     Non-Executive Director (PDMR)

                                                                  2.     PCA of Non-Executive Director

                                                                  3.     Non-Executive Director (PDMR) and her PCA

 b.  Initial notification/                                        Initial Notification

     Amendment
 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  Ordinary Shares of nil par value each

Identification Code
ISIN: GG00BMZR1514
 b.  Nature of the transaction                                    Purchase of Ordinary Shares
 c.  Price(s) and volume(s)

Price(s)    Volume(s)
                                                                                                     1. 119.5p   1. 8,368

                                                                                                     2. 119.5p   2. 8,368

                                                                                                     3. 119.5p   3. 8,368
 d.  Aggregated information                                        Not applicable (Single transactions)

     - Aggregated Volume

     - Price
 e.  Date of the transaction                                      1.    2 July 2024

                                                                  2.    2 July 2024

                                                                  3.    2 July 2024

 f.  Place of the transaction                                     Outside of a trading venue

d.

Aggregated information

- Aggregated Volume

- Price

 Not applicable (Single transactions)

 

e.

Date of the transaction

1.    2 July 2024

2.    2 July 2024

3.    2 July 2024

 

f.

Place of the transaction

Outside of a trading venue

 

 

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