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Alexander David Investments PL (ADI)

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Monday 30 April, 2012

Alexander David Investments PL

Alexander David Investments PLC : Acquisition o...

Alexander David Investments PLC : Acquisition of Portfolio of Investments

30 April 2012

Alexander David Investments PLC

("ADI" or the "Company")

Acquisition of Portfolio of Investments

The Board of Alexander David Investments PLC, an investing company which focuses on special opportunities, with a particular focus on the basic resources and oil and gas sectors, announces that it has today acquired a portfolio of investments from Griffin Two Limited for a consideration of £71,268 (the "Acquisition") to be satisfied by the issue of 41,922,448 new ordinary shares of 0.01p each ("Consideration Shares").

The portfolio of investments comprises investments in AIM quoted companies in the basic resources and oil and gas sectors, including two companies in which the Company already holds investments.  These new investments will fall primarily within the Company's trading portfolio which has the objective of short-term profits.

Application has been made to the London Stock Exchange for the Consideration Shares to be admitted to trading on AIM and admission is expected to occur on 4 May 2012.  The Consideration Shares will rank pari passu with the existing ordinary shares of 0.01p each in the Company.

Following the issue of the Consideration Shares, the issued share capital of the Company will comprise 443,072,105 ordinary shares of 0.01p each.

Following the Acquisition and following issue of the Consideration Shares, the net asset value per share will be 0.12p per share as at 30 April 2012.  The Company has two core areas of investment:

  • Trading activities: the Company holds a portfolio of investments on AIM which it trades with the objective of short-term profits.  As at 30 April 2012, the trading activities portfolio was valued at £160,000.  As this is a trading portfolio, the Company does not disclose the details of the portfolio except when required to pursuant to the AIM Rules. 

  • Investing activities: in certain circumstances the Company may hold certain positions in AIM, PLUS or pre-IPO situations to achieve medium-term capital growth.  The only investment in this area to date is in Evergreen Oil plc ("Evergreen"), details of which were disclosed in announcements to shareholders in June and July 2011.  Evergreen is a PLUS quoted company whose activity is the production of forecourt quality biodiesel and is in the renewable energy sector.  As at 30 April 2012, the investing activities portfolio was valued at £110,000. 

In addition, as part of the Demerger, the Company agreed to provide ReGen with a convertible loan note. As of 30 April 2012, the Company has issued a total of £200,000 convertible loan notes to ReGen.

The Company also holds 2,888,000 ordinary shares in ReGen, representing approximately 3.2 per cent of ReGen's issued share capital. ReGen's shares are traded on JP Jenkins and, as at 30 April 2012, ADI's holding was valued at £13,000.

As at 30 April 2012 the Company had cash resources of approximately £60,000.

Percy Lomax, Chairman, said "The portfolio of investments we have acquired fits exactly within our investment policy and comprises companies with which we are very familiar, being ones which we have previously invested or continue to invest in. In a challenging market, this acquisition allows us to increase our investing portfolio in a cost effective manner.".


Alexander David Investments PLC
Percy Lomax
+44 1245 462817
Cairn Financial Advisers LLP
Nominated Adviser
Liam Murray / Avi Robinson
+44 20 7148 7900
Alexander David Securities Limited
David Scott / Bill Sharp
+44 20 7448 9800

This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients.

The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.

Source: Alexander David Investments PLC via Thomson Reuters ONE


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