Northern VCTs Position for Growth with New Share Offers
LONDON - Northern Venture Trust PLC, along with Northern 2 VCT PLC and Northern 3 VCT PLC, collectively referred to as the Northern VCTs, has revealed a promising prospectus aimed at raising £36 million through new share subscription offers. These offers are strategically designed for the 2024/25 tax year, allocating £15 million to both Northern Venture Trust PLC and Northern 2 VCT PLC, while Northern 3 VCT PLC is set to receive £6 million.
Subscription Timeline and Details
The subscription offers are expected to commence on January 14, 2025, at 8:00 am and will be operating on a first-come, first-served basis. The opportunity for investors will remain open until noon on March 31, 2025, or until the full subscription amount is reached, as determined by the Directors.
Incentives for Existing Shareholders
Current shareholders of any of the Northern VCTs, as recorded on September 20, 2024, will benefit from a 0.5% reduction in subscription costs, which extends to their spouses or civil partners. Leading the management of this initiative is Mercia Fund Management Limited, which acts as the investment manager and adviser. In exchange for its services, Mercia will earn a fee relative to the gross proceeds obtained during the offers.
Fee Structure Breakdown
The fee structure varies, with a 2.5% fee for direct subscriptions or those through financial advisers, and 5% for subscriptions completed via execution-only platforms or brokers. There are specific discounts available for existing shareholders to incentivize participation.
Upfront Costs and Commissions
Mercia's agreement entails covering all upfront expenses related to the offers, including commissions to intermediaries. For subscriptions made through execution-only platforms or brokers, Mercia will also earn a trail commission of 0.2% annually for a duration of five years, emphasizing the ongoing nature of their partnership.
Board Endorsement and Fair Assessment
The Northern Venture Trust PLC's board has given its approval for the fee arrangements established with Mercia, describing them as fair and reasonable for shareholders. This evaluation has been corroborated by Howard Kennedy Corporate Services LLP, who serves as the sponsor for the company.
Accessing the Prospectus and Brochure
Interested parties can download the prospectus directly from the Mercia website. Alternatively, copies can be accessed at the registered office of Northern Venture Trust PLC. Moreover, it has been lodged with the National Storage Mechanism for public viewing. A comprehensive investment brochure that highlights the key features of the offering will be circulated among registered shareholders and will also be available online for broader access.
Frequently Asked Questions
What is the goal of the share subscription offers launched by Northern VCTs?
The primary goal is to raise £36 million for the 2024/25 tax year, benefiting Northern Venture Trust PLC, Northern 2 VCT PLC, and Northern 3 VCT PLC.
When do the subscription offers open and close?
The offers are set to open on January 14, 2025, and will close at noon on March 31, 2025, or earlier if the subscription caps are reached.
What incentives are available for existing shareholders?
Existing shareholders are eligible for a 0.5% reduction in offer costs for themselves and their spouses or civil partners.
Who manages the share subscription offers for Northern VCTs?
Mercia Fund Management Limited is responsible for managing the share subscription offers as the investment manager and adviser to the Northern VCTs.
How can interested investors access the prospectus?
The prospectus can be downloaded from the Mercia website or obtained from the registered office of Northern Venture Trust PLC.
