Understanding the New Prospectus from Northern 2 VCT PLC
Introducing the Prospectus from Northern 2 VCT PLC
Northern 2 VCT PLC, alongside Northern Venture Trust PLC and Northern 3 VCT PLC, has recently announced the publication of a significant prospectus. This document details the offers for new ordinary shares available for subscription during the 2025/26 tax year. The aim of these offers is to secure a total of £7 million for Northern 2 VCT PLC and an additional £14 million for each of its sister companies, Northern Venture Trust PLC and Northern 3 VCT PLC.
Details of the Offers
The share offers will officially open at 8:00 AM on 24 September 2025. What’s unique about these offers is that they will be processed on a 'first-come, first-served' basis. In a gesture of appreciation to shareholders, those who are already on the register by 16 June 2025, including their spouses or civil partners, will benefit from a 0.5% reduction in the costs applicable to their subscription if their applications are accepted. This is a great strategy to reward loyalty among existing shareholders.
Timeline and Allotments
Applications for the new shares will remain open until 12 noon on 31 March 2026, although they may close earlier if fully subscribed. Notably, the first allotment will occur on 25 November 2025. To ensure one is included in this initial allotment, applicable applications should be submitted by the close of business on 19 November 2025.
Role of Mercia Fund Management
Mercia Fund Management Limited, acting as the investment adviser and promoter for the Northern VCTs, has a crucial role in this process. According to the offer agreement established between Mercia and the Northern VCTs, they will receive a promoter's fee that may reach a maximum of 5.5% of the total subscription amounts. Additionally, if no commission is payable, the fee will be capped at 3.0%. Beyond this initial fee, Mercia will also receive an annual commission of 0.4% on the gross funds that have been subscribed under the Offers. This commission will last for five years, showcasing a robust partnership aimed at maximizing returns for investors.
Investment Management and Related Party Transactions
Importantly, Mercia is classified as a related party under UK Listing Rule regulations. The board of Northern 2 VCT PLC asserts that compensation allocated to Mercia as part of this offering is in the best interest of the company's shareholders. They have further been given written assurances regarding the fairness of this transaction from Howard Kennedy Corporate Services LLP, which acts as the company's sponsor.
Where to Access the Prospectus
For those interested in reviewing the prospectus, it can be downloaded from www.mercia.co.uk/vcts. Additionally, copies are available free of charge at the company’s registered office or by reaching out to Mercia directly.
Key Communication for Shareholders
The investment brochure summarizing essential details regarding the Offers has also been sent to registered shareholders. This helps ensure that all those eligible are informed and equipped to make investment decisions. For further assistance, shareholders can contact Sarah Williams or James Sly at Mercia Fund Management Limited via phone.
Frequently Asked Questions
What is the purpose of the prospectus published by Northern 2 VCT PLC?
The prospectus outlines the offers for new shares to raise capital for the Company and its partner funds during the respective tax year.
When do the offers for new shares open and close?
The offers will open at 8:00 AM on 24 September 2025 and will remain available until 12 noon on 31 March 2026, or until fully subscribed.
How can existing shareholders benefit from the offers?
Current shareholders will receive a 0.5% cost reduction on the subscription fees if their applications are accepted, highlighting customer loyalty.
What role does Mercia Fund Management play in this process?
Mercia is the investment adviser and promoter, receiving applicable fees based on the subscription amounts and providing ongoing management.
How can I access the prospectus and relevant documents?
The prospectus can be downloaded from the Mercia website, or it can be obtained by contacting the company's registered office.
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