Issue of Equity

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 Andrew Henton, Chairman		Tel: [phone] [e-mail]
Dowgate Wealth Limited (Portfolio Manager) Laurence Hulse, Lead Fund Manager		Tel: [phone] [e-mail]
Cavendish Capital Markets Limited (Nominated Adviser and Joint Broker) Ben Jeynes / Camilla Hume / Dan Hodkinson - Corporate Finance Chris West / Charlie Combe - Sales and ECM		Tel: [phone]
Dowgate Capital Limited (Joint Broker) Nicholas Chambers / Russell Cook		Tel: [phone]

To find out more, please visit: www.onwardopportunities.co.uk

 

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