Posting of annual report and notice of AGM

Braveheart Investment Group plc

05 July 2023

 

5 July 2023

Braveheart Investment Group plc

("Braveheart", the "Company" or the "Group")

Posting of annual report and accounts, notice of AGM and

proposed amendment to investment strategy

Braveheart Investment Group (AIM: BRH), announces that the Company's annual report and accounts for the year ended 31 March 2023, which incorporates notice of the Company's 2023 Annual General Meeting ("AGM") will be posted to shareholders today and will be available to download from the Company's website at www.braveheartgroup.co.uk.

The AGM will be held on 28 July 2023 at 10.30 am at the office of China Ventures Ltd, Unit 2, Common Farm, Common Lane, Mappleborough Green, Warwickshire, B80 7DP.

Proposed amendments to the Group's investment strategy

The AGM notice contains a resolution (the "Investment Strategy Resolution") to permit the Directors to replace the Company's investment strategy (the "Investment Strategy") as set out in part 1 of the Company's admission document dated 27 March 2007, which determines the permitted business and strategy of the Company.

The proposed new Investment Strategy is set out below:

The Group's strategy is to invest in early and later-stage businesses, primarily in the technology sector, but it will also consider opportunities in other sectors that are knowledge intensive, such as healthcare and professional services.

The Group will target investments in both unlisted and listed companies, where there is potential for significant growth. Investments are expected to be mainly in the form of equity and equity-related instruments, including convertible debt instruments in certain circumstances.

The Group may acquire investments directly or by way of holdings in intermediate holding or subsidiary entities. The Group might also invest in limited liability partnerships and other forms of legal entity. Where possible, the Group will seek investor protection rights, as determined by the Board.

The Group may offer its Ordinary Shares in exchange for shares in investee businesses in addition to a cash investment in such businesses.

For unlisted company investments, the Group targets companies at different stages of development, ranging from those which are just starting to trade to those which are expecting to achieve an IPO in the short term, thus providing portfolio diversification. These investments will typically involve active investment management.

The Group, where appropriate and deemed by the Board to be in the Group's best interests, may seek a position on the boards of unlisted investee companies. The Group where appropriate, will assist the board and management of investee companies, including helping to scale management teams, informing strategy and assisting with future financing.

For listed company investments, the Group targets investments where the Board considers the shares are undervalued but there are opportunities for significant growth. These investments will typically involve passive investment management, although the Board may take a more active approach if it considers there is a need to effect change.

Braveheart may occasionally invest in companies that are in rescue or distress situations where a value-creating opportunity has been identified. The Group does not have any maximum exposure limits but will generally take a minority stake in a business and look for investments where there is a good prospect of an exit in a two-to-five-year time period.

As risk reduces, the Group may increase its investment in subsequent rounds of funding and, as those businesses grow, may find itself holding a controlling interest in some trading companies. However, in such instances the Board will ensure that there is sufficient separation between the Group and the investee company so that the investee company does not become a trading company of the Group.

Full details of the proposed amendments to the Investment Strategy are set out in the explanatory notes to the notice of AGM. Should the Investment Strategy Resolution not be passed at the AGM, the Company will not be able to make the proposed amendments to the Investment Strategy. A further announcement will be made on conclusion of the AGM.

For further information:

Braveheart Investment Group plc	Tel: [phone]
Trevor Brown, Chief Executive Officer Viv Hallam, Executive Director
Allenby Capital Limited (Nominated Adviser and Joint Broker)	Tel: [phone]
James Reeve / George Payne
Peterhouse Capital Limited (Joint Broker)	Tel: [phone]
Duncan Vasey / Lucy Williams

 

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