LONDON - Northern 2 VCT PLC, along with its associated companies Northern Venture Trust PLC and Northern 3 VCT PLC, collectively known as the Northern VCTs, announced today the publication of a prospectus concerning new share subscription offers for the 2024/25 tax year. The subscription offers aim to raise £36 million, with Northern 2 VCT PLC and Northern Venture Trust PLC each seeking £15 million, and Northern 3 VCT PLC targeting £6 million.
The subscription offers are scheduled to open on Monday, January 14, 2025, at 8:00 am, and will operate on a first-come, first-served basis. These offers are set to close at noon on March 31, 2025, unless the subscription is fully met before this date or the directors elect to close the offers earlier.
Existing shareholders of the Northern VCTs as of September 20, 2024, along with their spouses or civil partners, will receive a 0.5% discount on the offer costs when their applications for shares are accepted. This initiative is designed to acknowledge shareholder loyalty.
Mercia Fund Management Limited, the investment manager and promoter for the Northern VCTs, will charge a fee of 2.5% of the gross proceeds from the offers for subscriptions received directly or through a financial adviser. Subscriptions made through an execution-only platform or broker will incur a higher fee of 5% of the gross proceeds, minus any commission waived by the platform or broker. However, existing shareholders and their spouses or civil partners will benefit from a 0.5% discount on these fees.
Out of the proceeds from the offers, Mercia will cover all upfront costs, including initial commissions payable to intermediaries. Additionally, for subscriptions made through execution-only platforms or brokers, Mercia will receive an annual trail commission of 0.2% of the aggregate value of accepted applications for a period of five years.
The board of Northern 2 VCT PLC has received confirmation from Howard Kennedy Corporate Services LLP, acting as the company's sponsor, that the arrangement for fees payable to Mercia is fair and reasonable concerning the company's shareholders.
The prospectus is available for download from Mercia's website and hard copies can be obtained from the company's registered office or by contacting Mercia directly. In compliance with UK Listing Rules, the prospectus has also been submitted to the National Storage Mechanism for public inspection. This subscription offer is based on a press release statement from the Northern VCTs.
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