Tavistock Investments Plc
("Tavistock" or the "Company")
Issue of Shares to Strategic Investor
19 March 2020
Tavistock is pleased to announce that it has today raised £650,000 of equity capital through the issue of 32,500,000 new ordinary shares of 1p each (the "Placing Shares") at an issue price of 2p per share (the "Placing").
30,000,000 Placing Shares, equivalent to 4.94% of the Company's issued share capital as enlarged by the Placing, have been issued to an experienced industry figure, Hugh Simon, and the Board is pleased to welcome him as a significant new investor in the Company.
The balance of the Placing Shares have been issued to members of the management team, including 416,700 shares to Chairman, Oliver Cooke, and 416,650 to Chief Executive, Brian Raven. Following the Placing Oliver Cooke will be interested in 27,059,256 shares and Brian Raven in 65,522,362 shares, representing 4.45% and 10.78% of the Company's enlarged capital respectively.
Hugh Simon is the Chief Executive, and ultimate owner, of the Hamon Investment Group ("Hamon Group"), an asset management group based in Hong Kong and London. Since being founded by Hugh in 1989, Hamon Group has grown into a multi-asset boutique manager.
In the UK, Hamon Group owns GEM (global emerging market) equity fund manager, Blackfriars Asset Management, which it acquired from BNY Mellon in 2011. BNY Mellon had a strategic equity stake in the Hamon Group for 18 years until 2016 when Hugh bought back its stake.
Hamon Group is licenced in Hong Kong, Korea, Ireland, and the UK. Blackfriars Asset Management is regulated by the Financial Conduct Authority.
Hugh has spent his career in the fund management industry, with an established track record for developing businesses, both organically and through acquisition. Hugh's interest is to develop a meaningful stake in the UK Wealth Management sector and he has identified Tavistock as a cornerstone investment.
Tavistock and Hamon Group are interested in identifying acquisition opportunities in the wealth and asset management sectors in the UK and Europe. Tavistock's Board believes that a strategic partnership with Hamon Group provides an opportunity to significantly increase the assets invested in its funds, particularly the 90% Protection Portfolios managed with Morgan Stanley & Co International Plc.
Application has been made for the newly issued shares to be admitted to trading on AIM, and admission is expected to take place on 20 March 2020 ("Admission"). Following Admission, the Company's issued share capital will consist of 607,795,801 ordinary shares. There are no ordinary shares held in treasury. Therefore, following Admission, this figure of 607,795,801 should be used by shareholders as the denominator for the calculation by which they determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA's Disclosure Guidance and Transparency Rules.
Brian Raven, Tavistock Investments' Chief Executive said:
"We are pleased that the fundamental value of the Company, the potential of our strategic initiatives, and in particular, the wide appeal of our protected funds, have been recognised by such an experienced industry figure. We look forward to progressing our growth plans together. The Placing has also strengthened the Company's working capital and regulatory capital position."
Hugh Simon, Hamon Group's owner and Chief Executive said:
"Hamon Group sees the UK wealth market as an attractive segment and one that is particularly well suited to Tavistock's growing suite of guaranteed and ESG products. I am delighted to be able to support Tavistock's continued growth and to explore areas of potential synergy between our two organisations."
Tavistock Investments Plc
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