22nd Oct 2018 12:59
LONDON (Alliance News) - Oxford Technology 2 VCT PLC said Monday it intends to launch an offer for subscription a new class of shares, and will hire an investment manager to manage the new share class under a "more generalist" investment policy.
The launch of the B shares will be managed by Chelverton Asset Management Ltd.
Oxford Technology and Chelverton will launch for subscription in late November to early December and intends to raise up to GBP5.0 million through the issue of 5.0 million B shares, with an over-allotment facility for a further GBP5.0 million.
Existing shareholders will be offered an opportunity to subscribe at a discount, plus an additional discount for shareholders who subscribe before March 22.
The trust is launching a new share class because its net asset value "has reached a point where covering the fixed costs required to maintain the company as a going concern is becoming increasingly uneconomic".
Oxford Technology 2 said it considered voluntarily winding up but believes it is not in the interest of shareholders.
The trust also looked into the possibility of merging with another VCT but could not find a "merger route that was economically beneficial".
Oxford Technology 2 felt a better solution was to find a way of enlarging its asset base whilst spreading costs across a wider asset base - with a merger proving difficult to maintain its ordinary share pool as a distinct set of assets.
The "most efficient" way of doing this was was to raise a new B share class under a new investment manager, with the fundraising costs being met by the manager.
The proposals will be put to shareholders at a general meeting on November 19.
Shares in Oxford Technology 2 were untraded Monday but last closed at 42.50 pence each.
Related Shares:
Oxford Technology 2 VCT