Corporate Update

RNS Number : 5355R

Catena Group PLC

08 March 2021

 

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the company's obligations under Article 17 of MAR.

8 March 2021

Catena Group PLC

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

Corporate Update

Catena Group Plc (AIM:CTNA) is pleased to announce the following corporate updates on its proposed acquisition of Insight Capital Partners Ltd ("Insight").

Acquisition of Insight

Good progress continues to be made on the proposed acquisition of Insight.  The share purchase agreement and other legal documentation are at an advanced stage, due diligence has largely been completed and all other "IPO" workstreams are progressing well.  In the coming weeks, the Directors expect to publish an admission document, including a circular to shareholders and notice of general meeting, to approve among other things, the proposed acquisition of Insight. Accordingly, the ordinary shares of Catena will remain suspended from trading on AIM until the publication of said admission document.  

Insight corporate update

Insight's shift from a consultancy based model to product sales is progressing well with the launch of a number of new products and a strong pipeline of potential customers. The company has agreed its first license of Portfolio Insights, Insight's new multi-asset machine learning platform for investment strategy and portfolio interrogation, with a large European asset manager.

Insight is also pleased to have recently appointed Sachin Kachhla as Director of Sales. Sachin is based in New York and brings extensive experience within financial technology sales. Most recently Sachin held the position of Managing Director, Head of Sales for Indus Valley Partners based in the USA.   Sachin specialises in sales of financial technology for the alternative and traditional asset management space. Prior to Indus Valley Partners, Sachin held the position of Director of Business Development at Eze Software Group. Sachin will oversee Insight's global sales efforts and will particularly support the continued expansion of its US client base.

Appointment of CFO

Catena is pleased to announce the appointment of Ashley Humphrey as non-board Chief Financial Officer ("CFO"). She will serve as CFO of the enlarged group post completion of the acquisition of Insight.

Ashley has extensive experience in a variety of finance functions for Aon, including overseeing Aon Singapore's accounts reporting for total operating revenue of $1bn annually. Most recently Ashley held the role of Head of Finance EMEA, based in Aon's headquarters in London. Whilst at Aon, Ashley gained her qualifications as a Certified Public Accountant, Certified Management Accountant and a Chartered Global Management Accountant.

Loan to Insight Capital Partners Ltd

In light of the numerous commercial opportunities at Insight, the Board announces that Catena has entered into a short-term shareholder loan agreement with Insight on 8 March 2021 (the "Loan"). The Loan provides a facility to Insight for up to £400,000, is unsecured and is repayable on demand at any time. The Loan may be drawn down by Insight in part or in full and attracts an interest rate of 3% above the Bank of England's Bank Rate. Interest is accrued daily and payable on the repayment date.   

As announced on 28 January 2021, Catena's cash balance as at 31 December 2020 stood at £1,032,000.

Related Party Transaction

Matthew Farnum-Schneider is a director of both Catena and Insight and as such the Loan is considered to be a related party transaction under the AIM Rules. John Murray, David Coldbeck, David Hillel and John Zucker are considered to be independent directors of the Company for the purposes of AIM Rule 13 (the "Independent Directors"). Having consulted with the Company's nominated adviser, Zeus Capital, the Independent Directors consider that the terms of the Loan are fair and reasonable insofar as Catena's shareholders are concerned.

Matthew Farnum-Schneider, Chief Executive of Catena commented:

"I'm very pleased with the progress we've made, not only in terms of bringing together Catena and Insight but in terms of the recent product achievements. Strengthening and broadening the teams only adds to this exciting potential. I look forward to sharing further details as soon as possible."

* ENDS *

For further information, please visit www.catenagroup.co.uk or contact:

Catena Group PLC Matthew Farnum-Schneider, Chief Executive	[phone]
Zeus Capital Limited (Nominated Adviser & Broker) David Foreman / Daniel Harris / Rishi Majithia	[phone]
SEC Newgate (Financial PR) Robin Tozer	[phone] [e-mail]

 

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