RUG Renn Universal

 
TIDMRUG 
 
RENN Universal Growth Trust plc (the "Company") 
 
The Company announces that, with no financial loss to the Company, an error 
occurred during the last month of the previous financial year (to 31 March 
2011) that is expected will cause the loss of its investment trust status for 
that year as a whole. The breach is being remedied and the Company is 
confirming with HM Revenue & Customs and its advisers the action being taken to 
regain investment trust status. 
 
On 17 March 2011 the Manager, acting on behalf of the Company, exercised 
warrants in Cover-All Technologies Inc ("Cover-All") with a value of USD170,000 
that were shortly due to expire. 
 
Prior to the exercise of these warrants, the Company's holding in Cover-All 
amounted to 17.32% of its total investments, following share price 
appreciation, taking the value above 15% (as permitted for investment trusts). 
The consideration paid upon exercise was USD35,000 and the value of the 
resulting holding amounted to 17.51% of total investments. This caused a 
technical breach of the 15% test in the investment trust rules contained in 
Chapter 4 of Part 24 of the Corporation Tax Act 2010 (which has replaced 
section 842 of the Income and Corporation Taxes Act 1988). 
 
No liability to corporation tax on capital gains in the financial year to 31 
March 2011 has arisen as a result of the loss of investment trust status 
because the Company had net realised losses in that year. 
 
At today's date, it is not anticipated that the Company will have a liability 
to corporation tax on capital gains in the current accounting period and 
measures have been taken, so far as possible, to ensure that this remains the 
case. As referred to above, the Company is confirming what further action needs 
be taken to regain investment trust status. A further announcement will be made 
in due course. 
 
The Board deeply regrets that this situation has arisen and is taking steps to 
ensure that the controls designed to prevent such an event are properly adhered 
to. 
 
Enquiries: 
 
Ernest Fenton, Chairman, 01892 822 175 
 
James Moseley / Robert Peel, Winterflood Investment Trusts, 020 3100 0250 / 
0291 
 
 
 
END 
 

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