REG - Onward Opportunities - Issue of Equity

Onward OpportunitiesAnnouncement

04/12/2024 07:00

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RNS Number : 6809O  Onward Opportunities Limited  04 December 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.

 

4 December 2024

 

Onward Opportunities Limited

("Onward Opportunities" or the "Company")

 

Issue of Equity

 

Subscription to raise not less than £1.63 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 not less than £1.63 million by way of a direct
subscription (the "Subscription"), in doing so increasing the Company's equity
base by a further 6.1 per cent. The Subscription has been made by new and
existing investors with the Company for 1,358,835 new ordinary shares (the
"Subscription Shares") at a price of 119.75 pence per new ordinary share (the
"Subscription Price").

 

In order to facilitate any further demand, the Company may accept further
direct subscriptions with the Company at the Subscription Price prior to 5.00
p.m. on 5 December 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 30 November 2024 of 117.74
pence per existing ordinary share.

 

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 £1.58
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 117.74 pence per existing ordinary share as at 30 November
2024 reflects investment performance ("NAV growth") over the last 12 months of
17.5 per cent. (30 November 2023: 100.24 pence per ordinary share).

 

Laurence Hulse, Lead Fund Manager of Onward Opportunities Limited, commented:
"We are facing the 41(st) consecutive month of outflows from UK equity markets
and such extremes make for profitable opportunities to the contrarian, value
investor with a permanent capital mindset. Our early investment returns ahead
of target are testament to this, as is the additional investment into the
Company by team members. The manager set themselves a stretch target at the
start of the year to double the size of the fund to £30m and this latest
raise leaves us within touching distance of that target, having raised £9.3m
so far in 2024 and supplemented this with investment performance ahead of our
target returns. 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 9 December 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 345,673 Subscription Shares. As a result, and on Admission, the
members of the Concert Party in the Company will collectively hold an
aggregate of 11,263,308 ordinary shares in the Company, representing 47.4 per
cent. of the Company's enlarged issued ordinary share capital.

 

In addition, Laurence Hulse, the Portfolio Manager's Lead Fund Manager, and
Luke Allen, a Non-Executive Director of the Company, have subscribed for 4,175
Subscription Shares and 25,052 Subscription Shares, respectively, 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.

 

Each of Laurence Hulse and Luke Allen are related parties of the Company
pursuant to the AIM Rules and their 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
Susan Norman, consider, having consulted with the Company's nominated adviser,
that Laurence Hulse's and Luke Allen'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 Laurence Hulse's and Luke Allen'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, 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)

 

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                                                         Laurence Hulse
 2   Reason for notification
 a.  Position/Status                                              Investment Director of Dowgate Wealth Limited (PDMR)
 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 Subscription Shares
 c.  Price(s) and volume(s)

Price(s)  Volume(s)
                                                                                               119.75    4,175
 d.  Aggregated information                                        Not applicable

     - Aggregated Volume

     - Price
 e.  Date of the transaction                                      4 December 2024
 f.  Place of the transaction                                     Outside of a trading venue

d.

Aggregated information

- Aggregated Volume

- Price

 Not applicable

 

e.

Date of the transaction

4 December 2024

f.

Place of the transaction

Outside of a trading venue

 

 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                                                         Luke Allen (The Allen Retirement Annuity Trust Scheme)
 2   Reason for notification
 a.  Position/Status                                              Non-Executive Director (PDMR)
 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 Subscription Shares
 c.  Price(s) and volume(s)

Price(s)  Volume(s)
                                                                                                119.75    25,052
 d.  Aggregated information                                        Not applicable

     - Aggregated Volume

     - Price
 e.  Date of the transaction                                      4 December 2024
 f.  Place of the transaction                                     Outside of a trading venue

d.

Aggregated information

- Aggregated Volume

- Price

 Not applicable

 

e.

Date of the transaction

4 December 2024

f.

Place of the transaction

Outside of a trading venue

 

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