The Launch of a New Investment Opportunity
The board of Foresight VCT PLC is excited to introduce a new subscription offer, targeting a fundraising goal of up to £20 million. This initiative features an over-allotment option that could lead to an additional £5 million raised through the issue of new shares. This offer grants both current shareholders and prospective investors a fresh opportunity to engage with the Company while benefiting from the various tax incentives available for qualifying investors.
Investment Details and Timeline
The subscription offer opens immediately and is set to close for applications at noon on specific dates for different tax years. Investors aiming for the 2024/2025 tax year will need to submit their applications by noon on April 2, 2025. Meanwhile, the deadline extends to noon on April 30, 2025, for those interested in the 2025/2026 tax year. However, this duration may shorten if the offer reaches full subscription quicker than anticipated or at the discretion of the board.
Purpose of the Capital Raised
The funds acquired through this offer will significantly enhance the Company’s financial agility, allowing it to capitalize on investment opportunities, maintain a steady dividend policy, and support operational costs effectively. A detailed outline of the offer can be found in the prospectus released by the Company today.
The Promoter's Role and Fees
Foresight Group Promoter LLP is facilitating this offer, receiving a fee corresponding to the amount invested by various client types. For Retail Client Investors, Professional Client Investors, and Execution-Only Investors, the fee stands at 2.5%, while Direct Investors attract a fee of 4.5%. Notably, additional commissions may apply to non-Direct Investors, emphasizing the need for careful consideration by investors. Should all investors fall into the Direct category, the promoter’s maximum fee could reach £1.125 million.
Related Party Transaction Considerations
It's essential to acknowledge that the promoter operates as a subsidiary of Foresight Group LLP, which acts as the Company's manager. As defined by UK Listing Rules, this relationship creates a related party transaction. The board anticipates that the fees align with standard market practices, ensuring a fair and reasonable arrangement for shareholders.
Net Asset Value and Share Ranking
The pricing for the new shares will correspond to the recently published net asset value of existing shares, consolidating confidence in this offer by preventing significant dilution of current shareholders’ value. The new shares will hold equal rights alongside existing shares in the Company, maintaining unity among investors.
Availability of the Prospectus
The prospectus detailing the offer has received approval from the Financial Conduct Authority and will soon be accessible for download via the Company's official website.
Contact Information for Investors
For any inquiries or further information, interested parties may reach out to the Company Secretary, Gary Fraser, at Foresight Group LLP via telephone or contact Investor Relations through Jenny Cole at the same organization.
Frequently Asked Questions
What is the purpose of the new subscription offer?
The subscription offer aims to raise up to £20 million to maintain liquidity and leverage investment opportunities while providing tax relief benefits to eligible investors.
Who can participate in this subscription offer?
Both current shareholders and new investors are encouraged to participate in this offer to benefit from the tax incentives associated with the investment.
What are the key deadlines for applications?
The offer will close at noon on April 2, 2025, for the 2024/2025 tax year and at noon on April 30, 2025, for the 2025/2026 tax year.
What is the role of Foresight Group Promoter LLP?
Foresight Group Promoter LLP acts as the promoter of the offer, responsible for facilitating the process and regulating the fee structures for different types of investors.
How does this offer affect existing shareholders?
The offer is structured to avoid material dilution of existing shares, ensuring that current investors' net asset value remains stable.
