Alpha Growth PLC Advancement of Warehousing SPV and Subscription (2407V)
December 02 2019 - 2:00AM
UK Regulatory
TIDMALGW
RNS Number : 2407V
Alpha Growth PLC
02 December 2019
Alpha Growth plc
("Alpha, or the "Company")
Advancement of new business vertical "Warehousing SPV"
with leading UK asset manager
Subscription to raise GBP0.3m
Total Voting Rights
Alpha Growth plc (LSE: ALGW), the financial services specialist
in the growing Senior Life Settlement ("SLS") asset class,
announces an update in relation to the Warehouse SPV vertical of
Alpha's business plan.
After many months of engagement, the Company is now in the final
stages of securing a revolving credit facility up to a $100,000,000
with a leading UK asset manager. The discussions have progressed
well whereby the Company and Asset Manager have now agreed life
settlement valuation methodologies and acquisition strategies.
This facility will be a key element to enable Alpha to aggregate
SLS policies to be vended into investors, in a sufficient
transactional value that is relevant to the underlying buyers,
whether that be a bond offering or investment portfolio. The
Company expects to be able to complete the necessary documentation
in a timely manner and looks forward to updating the market on
closing of the facility.
The Facility allows the following key steps:
-- institutional investments into SLS assets.
-- Aggregate assets into investable collateral pools to be
vended over to a bond issuing entity or an institutional investor's
portfolio.
-- The aggregation of the policies will be undertaken using
leverage in a bankruptcy remote SPV, referred to by the Company as
a "warehouse" entity.
-- The warehouse entity has the sole purpose of borrowing funds
to buy SLS Assets, which in turn will sell them to the entity that
ultimately issues the bond or to the investor acquiring an
assembled portfolio of policies.
-- Alpha will assist in the initial incorporation of the
warehouse entity, advise on the acquisition of the SLS Assets and
manage the SLS Assets once acquired and transferred.
-- Alpha will also act as the asset manager for the acquisition
and downstream bond/investors of the SLS Assets, receiving a fee
for its services.
Share Subscription to raise GBP0.3m
The Company is also pleased to announce that it has raised
GBP304,500 by way of Company Subscription at a price of 1.25 pence
per new share in support of this advancing business vertical. The
proceeds will be used by the Company to pay pre-closing costs,
which it will now need to incur with respect to legal fees and SPV
inception. Accordingly, the Company has agreed to issue,
conditional on admission 24,360,000 new ordinary shares of 0.1p
each (the 'Subscription Shares'). The Subscription Shares will,
rank pari passu in all respects with the existing ordinary
shares.
Total Voting Rights
Following the issue of the Placing Shares, the Company's issued
share capital will consist of 183,061,666 ordinary shares.
Gobind Sahney, Chairman of Alpha, commented: "Working with the
counterparty to establish this warehouse facility, has been a
detailed and long process that results in our ability to take
significant positions in the asset class and multiply the returns
for the long term. Not to mention that it has validated Alpha's
methodologies and skills with a sophisticated investor, as stated
we expect to close this warehouse facility within the coming weeks.
The addition of the "warehouse" we believe will have a material
impact on our business going forward."
"I and the team will be in London before and after the holiday
breaks to progress the above and our other strategies. I look
forward to updating the market shortly on the other aspects of the
business as we further validate and improve the offering across our
various revenue channels, with the addition of new personnel we are
seeing increasing appetite and interest to the funds and will be
updating the market in the very near term."
The information communicated in this announcement contains
inside information for the purposes of Article 7 of the Market
Abuse Regulation (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
For more information, please visit www.algwplc.com or contact
the following:
Alpha Growth plc +44 (0) 20 3959 8600
Gobind Sahney, Executive Chairman info@algwplc.com
Novum Securities Limited (Corporate +44 (0) 207 399 9400
Broker) crowbury@novumsecurities.com
Colin Rowbury
------------------------------
About Alpha Growth plc
Specialist in Longevity Assets
Alpha Growth plc is a financial advisory business providing
specialist consultancy, advisory, and supplementary services to
institutional and qualified investors globally in the multi-billion
dollar
market of longevity assets. Building on its well-established
network, Alpha Growth has a unique position in the longevity asset
services and investment business, as a listed entity with global
reach. The Company's strategy is to expand its advisory and
business services via acquisitions and joint ventures in the UK and
the US to attain commercial scale and provide wholistic solutions
to alternative institutional investors who are in need of
specialised skills and unique access to deploy their financial
resource in longevity assets.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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