LONDON - Foresight VCT PLC, a venture capital trust, has announced a new offer to raise up to £20 million with the potential to extend to £25 million through an over-allotment facility. The offer, which commenced today, aims to issue new shares to both existing shareholders and new investors, providing an opportunity to capitalize on VCT tax reliefs.
This fundraising endeavor is designed to bolster the company's liquidity, enabling it to seize upcoming investment opportunities, sustain its dividend policy, repurchase its own shares, and cover operational expenses. The offer is set to close on 2 April 2025 for the 2024/2025 tax year and on 30 April 2025 for the 2025/2026 tax year, unless the subscription is filled earlier or at the board's discretion.
Foresight Group Promoter LLP, affiliated with the company's manager Foresight Group LLP, will serve as the promoter to the offer. The promoter has agreed to shoulder all associated costs and charges of the offer, excluding intermediary commissions and adviser charges. They will receive a fee based on the amount subscribed by various investor classes, with a maximum potential fee of £1.125 million if all investors were Direct Investors.
The Board has assessed the Promoter’s Fee and deems it consistent with market practices, and BDO LLP, the company's sponsor, has advised that the transaction is fair and reasonable for shareholders. The Board has also stated that the offer should not materially dilute the net asset value per share for existing shareholders.
The price for the new shares will reflect the most recent net asset value of an existing share at the time of allotment, including the Promoter’s Fee and other offer costs. The new shares will be on equal footing (pari passu) with the current shares upon issue.
The Prospectus detailing the offer has been approved by the Financial Conduct Authority and will soon be available on the company's website and the National Storage Mechanism. This move is based on a press release statement by the company.
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