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(Alliance News) - Financial services firm Alpha Growth PLC's shares surged on Monday as the firm said it was close to a new USD100 million revolving credit facility.
Shares closed 71% higher on Monday at a price of 2.57 pence each.
London-based Alpha Growth said discussions with the unnamed "leading" UK-based asset manager providing the loan have progressed well, and it expects closure soon. The company said the facility will allow institutional investments into senior life settlement assets.
Further, Alpha Growth has raised GBP304,500 through a share placing at 1.25 pence each. This will go towards costs related to securing the facility.
Chair Gobind Sahney said: "Working with the counterparty to establish this warehouse facility has been a detailed and long process that results in our ability to take significant positions in the asset class and multiply the returns for the long term.
"Not to mention that it has validated Alpha's methodologies and skills with a sophisticated investor, as stated we expect to close this warehouse facility within the coming weeks. The addition of the 'warehouse' we believe will have a material impact on our business going forward."
"I and the team will be in London before and after the holiday breaks to progress the above and our other strategies. I look forward to updating the market shortly on the other aspects of the business as we further validate and improve the offering across our various revenue channels, with the addition of new personnel we are seeing increasing appetite and interest to the funds and will be updating the market in the very near term," Sahney continued.
By George Collard; georgecollard@alliancenews.com
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