REG - Onward Opportunities - Issue of Equity

Onward OpportunitiesAnnouncement

24/10/2024 12:00

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RNS Number : 4919J  Onward Opportunities Limited  24 October 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.

 

24 October 2024

 

Onward Opportunities Limited

("Onward Opportunities" or the "Company")

 

Issue of Equity

 

Subscription to raise approximately £1.0 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 £1.0 million by way of a direct
subscription (the "Subscription"), in doing so increasing the Company's equity
base by a further 3.9 per cent. The Subscription has been primarily made by a
new institutional investor, with the total subscription to the Company for
836,557 new ordinary shares (the "Subscription Shares") at a price of 117.54
pence per new ordinary share (the "Subscription Price").

 

The Subscription Price represents a premium of 1.7 per cent. to the Company's
unaudited net asset value per ordinary share as at 18 October 2024 of 115.54
pence per existing ordinary share.

 

Following the Subscription, the Company remains committed to increasing its
capital base on attractive terms for the Company's existing shareholders,
providing greater scale for new investment opportunities and diluting the
impact of overheads.

 

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 £0.94
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 115.54 pence per existing ordinary share as at 18 October
2024 reflects investment performance (NAV growth) over a c.12 month period of
15.1 per cent. (30 September 2023: 100.39 pence per ordinary share).

 

Laurence Hulse, Lead Fund Manager of Onward Opportunities Limited, commented:
"It is encouraging that new investors are recognising that Onward
Opportunities has the capacity and capability in place to accept new
investment on an ongoing basis, and investors are now directing inbound
interest to the Company, even in the current backdrop to UK equity markets.
The capital raised adds additional dry powder heading into the UK budget at a
time of market outflows, drawdowns and depressed smaller company valuations.
Our core strategic objectives are to invest in attractive investment ideas and
scale the company to maximise efficiencies. This raise is another step onward
in both of these objectives."

 

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

 

Total Voting Rights

 

On Admission, the Company will have a total of 22,392,151 ordinary shares in
issue. No ordinary shares are held in treasury. The figure of 22,392,151 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 106,346 Subscription Shares. As a result, and on Admission, the
members of the Concert Party in the Company will collectively hold an
aggregate of 10,994,001 ordinary shares in the Company, representing 49.1 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 / Hamish Waller - 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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