REG - Onward Opportunities - Issue of Equity

Onward OpportunitiesAnnouncement

26/09/2024 07:00

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RNS Number : 6947F  Onward Opportunities Limited  26 September 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.

 

26 September 2024

 

Onward Opportunities Limited

("Onward Opportunities" or the "Company")

 

Issue of Equity

 

Subscription to raise approximately £1.62 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 £1.62 million by way of a direct
subscription (the "Subscription"), in doing so increasing the Company's equity
base by 6.3 per cent. The Subscription has been made by new and existing
investors with the Company for 1,273,373 new ordinary shares (the
"Subscription Shares") at a price of 127.0 pence per new ordinary share (the
"Subscription Price").

 

The Company expects to raise additional gross proceeds of not less than £0.10
million from a select number of additional investors by way of a further
direct subscription with the Company at the Subscription Price prior to 1
October 2024.

 

The Subscription Price represents a premium of 1.7 per cent. to the Company's
unaudited net asset value per ordinary share as at 20 September 2024 of 124.9
pence per existing ordinary share.

 

The Board and Portfolio Manager continue to believe that there are compelling
structural factors underpinning the Company's investment strategy. Prevailing
market conditions create an environment in which the Portfolio Manager has the
ability to generate aggregated portfolio returns in excess of 15.0 per cent
per annum over the long term which Onward Opportunities has so far exceeded
since its launch. The net proceeds of the Subscription of approximately £1.55
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 124.9 pence per existing ordinary share as at 20 September
2024 reflects investment performance (NAV growth) over a c.12 month period of
26.0 per cent. (31 August 2023: 99.15 pence per ordinary share).

 

Laurence Hulse, Lead Fund Manager of Onward Opportunities Limited, commented:
"We would like to thank investors for the third round of support this year, in
what remains a fickle market backdrop. It is particularly advantageous to be
able to grow in these conditions and the 30.5% investment return since launch
of Onward Opportunities 18-months ago is testament to what the strategy can
deliver with raised capital. We have a pipeline of exciting opportunities and
a now enlarged pool of dry powder to match. Onwards."

 

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 1 October 2024 and the Subscription Shares will, on issue, rank pari
passu in all respects with the Company's existing ordinary shares.

 

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 122,963 Subscription Shares. As a result, and on Admission, the
members of the Concert Party in the Company will collectively hold an
aggregate of 11,065,176 ordinary shares in the Company, representing 51.6 per
cent. of the Company's enlarged issued ordinary share capital.

 

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.

 

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, Lead Fund Manager                                           hello@dowgate.co.uk

 Cavendish Capital Markets Limited (Nominated Adviser and Joint Broker)      Tel: +44 (0)20 7220 0500

 Ben Jeynes / Camilla Hume / Dan Hodkinson - Corporate Finance

 Chris West / Charlie Combe - Sales and ECM

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

 Nicholas Chambers / Russell Cook

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

 

 

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