Northern 1,2 & 3 VCT new offer

[CrackAddick]

Looks like Northern plan to launch a non-prospectus fund raise this year.

http://www.nvm.co.uk/investor-area/nvt/ ... 8126680612

Further details to be published in Nov 2018, with the offer opening in Jan 2019.

[scotia]

From Northern today:-
http://www.lse.co.uk/share-regulatory-n ... p_up_offer

(My) summary - each of the three Northerns will seek to raise up to £6.6M.
It is expected that the offers will open on 7th January 2019 and remain open until 5th April 2019 unless fully subscribed by an earlier date. Applications will be on a first come first served basis - with a minimum subscription of £6000 in Total and £2000 in each of the three Northerns. Current shareholders (on the register at 14th November) will have priority application rights for a period of fourteen days from the date of publication of the Offer Document. It is expected that all new shares will be allotted between 1 April 2019 and 5 April 2019.

My thoughts - what does the insistence of investing a minimum in each of the three VCTs mean? Does it mean "each and every" - i.e. insisting that you spread the application over all three VCTs. If so, this is a nuisance since It inhibits a 5-year sale and re-purchase policy. Maybe it simply means that you can spread your total as you wish as long as any of the VCTs which you invest in is subject to a £2000 minimum. (note - this is an edit since I initially thought that it meant "each and every")

I see that the issue will not take place until April. I hope that they confirm acceptance or rejection of an application immediately (or soon after) receipt.

[Kidman]

Maybe it simply means that you can spread your total as you wish as long as any of the VCTs which you invest in is subject to a £2000 minimum.

I think this is how it works, and seem to recall it being done like this before. For example one can't do £1,000 in 1 and £5,000 in 2, whereas £2,000 in 1 and £4,000 in 2 (and none in 3) would be acceptable.

[BusyBumbleBee]

Three VCTs in a common stable. Each board of directors agrees with the manager(?) to participate in a joint fund raise which places some restrictions on how a would be investor can invest their money in the three VCTs. Furthermore the Board of each VCT gives a right to an investor in one of the other two VCTs to invest in their company.

Albion also does a joint fund raise with its several VCTs but none of those VCT has any restrictions on which VCT the investor chooses. The boards in this case have taken a sensible decision to save cost by joining in a joint offer.

[james188]

The wording could have been more clear, but I think that linked offers have been ruled out since the 5 year reinvestment rule came in - as referred to in previous posts. So, I think that all that the Northern VCTs have done is to specify a minimum investment level of £6,000 in the round and £2,000 if an investor decided to split between the three VCTs. Whether an investor decides to split is up to him/her. Northern are fairly switched on, so I am relaxed that it will work on this way - as it has in previous offers. I wonder if they will offer an online acceptance procedure, as a number of their competitors are now doing. I hope so.

[james188]

Just to correct one slip of the virtual pen in my last post. The linked sale embargo period should, of course, have said six months.

[flyer61]

My thoughts.....if you were not on the register 14 Nov you will not get any allotment. Recent history says this will all be done and dusted by lunch time on 7 January.

Might get the train....

[UncleEbenezer]

My thoughts.....if you were not on the register 14 Nov you will not get any allotment. Recent history says this will all be done and dusted by lunch time on 7 January.

Might get the train....

Hadn't noticed the Nov 14th date.

Could it be that someone has noticed people buying on the secondary market to qualify after an announcement, and thinks that's not a good thing?

[flyer61]

Or it ensures that those in the know get exactly what they want. Northern (1) seems to be a closed shop if my experience of recent offers is anything to go by.

[yorkshirelad1]

Looks like Northern plan to launch a non-prospectus fund raise this year.

http://www.nvm.co.uk/investor-area/nvt/ ... 8126680612

Further details to be published in Nov 2018, with the offer opening in Jan 2019.

Northern 2 posted interim report yesterday (27 Nov), along with circular for general meeting
https://www.investegate.co.uk/northern- ... 0000H8094/
http://www.nvm.co.uk/investor-area/n2vc ... cations-2/

[scotia]

Northern 2 posted interim report yesterday (27 Nov), along with circular for general meeting

They have £22.5M in cash out of a total of £85M. I'm not sure they need to raise more funds (even if its only £6M).

[BusyBumbleBee]

Scotia, you say

They have £22.5M in cash out of a total of £85M. I'm not sure they need to raise more funds (even if its only £6M).

so true and it (the cash pile) has only reduced by about £3 million in the past six months so it will take another 7 half years to spend it all at that rate and in the meanwhile the manager takes 2.06% of the cash each year.

NVM receives a basic management fee, payable quarterly in advance, at the rate of 2.06% per annum of net assets calculated half-yearly as at 31 March and 30 September.

plus a performance related fee - See Note 3 of the Annual Report. Noted also that the directors fees have gone up a lot and the dividend has fallen to just 4 pence per share. Who takes the pain?