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 October 2023
Onward Opportunities Limited
("Onward Opportunities" or the "Company")
Issue of Equity
Subscription to raise £3.4 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 £3.4 million by way of a direct subscription (the "Subscription") by new and existing investors with the Company for 3,277,280 new ordinary shares (the "Subscription Shares") at a price of 102.5 pence per new ordinary share (the "Subscription Price").
The Subscription Price represents a premium of 1.5 per cent. to the Company's unaudited net asset value per ordinary share as at 15 September 2023 of 101 pence per existing ordinary share and a premium of 6.3 per cent. to the Company's unaudited NAV per share of 96.4 pence per existing ordinary share as at the Company's half year on 30 June 2023.
The Board and Portfolio Manager continue to believe that there are compelling structural factors underpinning the investment strategy and that prevailing market conditions create an environment in which the Portfolio Manager has the ability to generate aggregated portfolio returns in excess of 15 per cent. per annum over the long term. The Board is delighted to welcome a number of new institutions to the share register as well as to have received ongoing support from Investment Committee members and directors. The net proceeds of the Subscription of approximately £3.4 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 recently reported half year results to 30 June 2023, noting gross portfolio IRR (annualised return) of 20.7% to the end of August.
Andrew Henton, Non-Executive Chairman of Onward Opportunities, commented:
"Onward Opportunities launched at a time when the Portfolio Manager believed smaller growth companies in the UK were undervalued by the market. Whilst we believe this remains the case, the Company's NAV performance since launch evidences both the Manager's capability in identifying attractive companies and growing investor recognition of hidden value.
The new money raised will increase the opportunity set for the Company. We hope to continue tapping investor demand for new shares as the Company develops over coming months and years."
Laurence Hulse, Investment Director of Dowgate Wealth Limited, commented:
"We are pleased to see early recognition of the investment opportunity we are capturing with new investor interest in the company at this early stage, allowing us to grow the business by c.25% after 6 months of operations. Markets remain fickle, but this is exactly why it is so important to be able to raise additional firepower - the drivers of a tough fundraising environment are the same reasons why now makes for an attractive buying opportunity in UK equities."
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 6th October 2023 and the Subscription Shares will, on issue, rank pari passu in all respects with the Company's existing ordinary shares.
On Admission, the Company will have a total of 16,027,290 ordinary shares in issue. No ordinary shares are held in treasury. The figure of 16,027,290 may be used by the Company's shareholders as the denominator in the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority's Disclosure Guidance and Transparency Rules.
Director and Related Party Participation in the Subscription
The Directors, PDMRs and Persons Closely Associated ("PCAs") have subscribed for Subscription Shares in the amounts set out below.
| Director | Number of existing ordinary shares | % of existing issued ordinary share capital | Number of Subscription Shares subscribed for | Ordinary shares held on Admission | % of enlarged issued ordinary share capital on Admission
|
| Henry Freeman | 0 | 0.0 | 15,000 | 15,000 | 0.1 |
| Susan Norman | 20,000 | 0.2 | 4,878(1) | 24,878 | 0.2 |
(1) 4,878 Subscription Shares subscribed for pursuant to the Subscription by Adrian Norman, spouse and PCA of Susan Norman, a Non-Executive Director.
In addition, Dowgate Wealth Limited (the "Portfolio Manager"), the Company's Portfolio Manager and a Substantial Shareholder of the Company, and its affiliates have subscribed for 2,138,134 Subscription Shares. As a result, and on Admission, the members of the Concert Party in the Company, details of which were disclosed in full in the Company's AIM Admission Document dated 23 March 2023, will collectively hold an aggregate of 9,008,043 ordinary shares in the Company, representing 56.2 per cent. of the Company's enlarged issued ordinary share capital.
The Directors of the Company and the Portfolio Manager are each deemed related parties of the Company pursuant to the AIM Rules for Companies ("AIM Rules") and, as a result, the participation of the Directors, their PCAs and the Portfolio Manager in the Subscription is deemed to be a related party transaction under Rule 13 of the AIM Rules. The independent directors of the Company, being Andrew Henton and Luke Allen consider, having consulted with the Company's nominated adviser, that the terms of the participation of the Directors, their PCAs and the Portfolio Manager in the Subscription are fair and reasonable insofar as shareholders are concerned.
The notifications below, provided in accordance with the UK Market Abuse Regulation, provide further details.
Change of Name of Nominated Adviser and Broker
The Company also announces that its Nominated Adviser and Broker has changed its name to Cavendish Securities plc following completion of its own corporate merger.
FOR FURTHER ENQUIRIES:
| Onward Opportunities Limited Andrew Henton, Chairman
| Via Share Communications |
| Dowgate Wealth Limited (Portfolio Manager) Laurence Hulse, Investment Director
| Via Share Communications |
| Cavendish Securities plc (Nominated Adviser and Joint Broker) Ben Jeynes / Camilla Hume / Dan Hodkinson / Hamish Waller Michael Johnson / George Budd (Sales)
| Tel: +44 (0) 207 220 0500 |
| Dowgate Capital Limited (Joint Broker) Russell Cooke / Nicholas Chambers
| Tel: +44 (0)12 9351 7744 |
| Share Communications (PR Adviser) Zoe Powell / Eleanor Mitchell
| Tel: +44 (0)20 7071 3932 team@sharecomms.co.uk |
To find out more, please visit: www.onwardopportunities.co.uk
The following notifications are intended to satisfy the Company's obligations under Article 19(3) of the Market Abuse Regulation.
| 1 | Details of the person discharging managerial responsibilities/person closely associated | |||||||
| a) | Name | 1. Henry Freeman 2. Adrian Norman
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| 2 | Reason for notification |
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| a) | Position/Status | 1. Non-Executive Director 2. PCA of Susan Norman, Non-Executive Director
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| b) | Initial notification/amendment | Initial notification
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| 3 | Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor | |||||||
| a) | Name | Onward Opportunities Limited
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| 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 and identification code | Ordinary shares of no par value ISIN: GG00BMZR1514
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| b) | Nature of transaction | Subscription for new ordinary shares
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| c) | Price(s) and volume(s) |
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| d) | Aggregated information | n/a
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| e) | Date of transaction | 1. 4 October 2023 2. 4 October 2023
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| f) | Place of transaction | Outside of a trading venue
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