Alpha Growth PLC - London-based financial advisory specialising in 'longevity assets' such as life insurance - Raises GBP3.8 million from oversubscribed share placing run by Pello Capital to fund acquisition of insurance company in Bermuda. A total of 187.5 million shares, 78% of Alpha's existing total, will be placed at 2 pence apiece. Each comes with a warrant to buy another share at GBP0.03 within the next two years. Pello also will be awarded 18.8 million warrants to buy shares at the placing price of 2p, also within the next two years.
Funds to be used for agreed purchased of a Bermuda-based holding company and its wholly owned insurance company. Alpha doesn't name the company but says it is a Class C licensed insurer with ongoing operations, managed assets of more than USD290 million, and in-force policies of over USD750 million. Alpha will buy 95% of the holding company, with 5% retained by its seller and existing chair. Alpha expects to be profitable on an earnings before interest, tax, depreciation and amortisation basis follow the acquisition. The deal requires approval from the Bermuda Monetary Authority and is expected to be completed this quarter.
Alpha also said its BlackOak Alpha Growth Fund achieved a net return of 11% in 2020. It now has more than USD22 million in assets under management, more than doubling over the course of 2020.
"Today's acquisition announcement is a significant step forward for the company and demonstrates the ambition of Alpha Growth as well as the scale of the future opportunity," said Alpha Executive Chair Gobind Sahney.
Current stock price: 2.88 pence, up 24% on Thursday
Year-to-date change: up 12%
By Tom Waite; thomaslwaite@alliancenews.com
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Alpha Growth (ALGW)