TRADING UPDATES: Mercantile adds to debt; Mercia ups Locate Bio stake

(Alliance News) - The following is a round-up of updates by London-listed companies, issued on Friday and not separately reported by Alliance News:

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Mercantile Investment Trust PLC - investment trust focused on UK medium and smaller sized firms - Raises additional GBP150 million of long-term debt through the issue of three fixed rate, senior unsecured privately placed notes. Says GBP55 million of notes will mature in 2041, which hold fixed coupon of 1.98%, with GBP50 million maturing in 2051 with a fixed coupon of 2.05%; and GBP45 million maturing in 2061 with a fixed coupon of 1.77%. The net proceeds from the notes will be used to repay the company's short-term indebtedness of GBP80 million. "The balance of the proceeds will be available to be invested as and when attractive opportunities arise. The company's short-term debt facility will remain available providing further investment flexibility," company adds.

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Mercia Asset Management PLC - West Midlands-based asset manager - Makes "significant" syndicated investment into existing direct investment portfolio company Locate Bio Ltd, a Nottingham-based business developing a range of orthobiologics. Deal consists of a syndicated GBP10.0 million Series A round in which Mercia has made a direct investment of GBP1.6million, alongside GBP4.0million from Mercia's third party managed funds, together with GBP3.0million from BGF and GBP1.4million from other syndicate partners. This funding round has increased Mercia's fully diluted direct investment stake to 18.1%, with Mercia's combined managed funds' fully diluted stakes now totalling 24.6%.

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Circle Property PLC - London-based buyer, developer and manager of regional office assets in UK - Completes sale of 135 Aztec West in Bristol to Assura Aspire Ltd for GBP4.0 million, which represents a 62% increase on March 31 valuation. The building was refurbished in the first half of 2021 at a cost of about GBP2.2 million. The cash proceeds from the sale will be utilised to reduce the company's gearing from the current level.

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Symphony Environmental Technologies PLC - Hertfordshire-based firm that turns plastic into biodegradable material - Health Canada approves d2p antimicrobial food contact technology. "Approval for Symphony's d2p antimicrobial food contact technology, applies to polyolefin and polyester multi-layer films for wrapping bread, so as to inhibit the growth of bacteria on the surface of the packaging film, which is vital in a very hygiene-conscious industry," company explains. Chief Executive Michael Laurier adds: "We have been working for some time with customers in Canada, and approval from Health Canada now enables this project to proceed more quickly to commercialisation."

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Beximco Pharmaceuticals Ltd - Bangladesh-based pharmaceutical company - Proposed acquisition of majority stake in Sanofi Bangladesh Ltd gets approval from Foreign Exchange Investment Department of Bangladesh Bank. Company and the vendor will now seek to execute the share purchase agreement. In mid-January, French pharmaceutical firm Sanofi SA agreed to sell a majority stake in its Bangladesh unit to Beximco around GBP35.5 million for just shy of a 55% stake.

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DCD Media PLC - a TV distribution and production group - Improves to pretax profit of GBP496,000 in year to March 31 from GBP156,000 loss in 15 months to March 31, 2020. Revenue grows to GBP11.3 million from GBP10.9 million. Administrative expenses drop to GBP1.7 million from GBP2.2 million. Executive Chair & Chief Executive David Craven says: "This financial performance in the year is the result of an outstanding performance by all members of the DCD Rights team. We are obviously delighted with the overall performance of the business across the period, a number of factors are worthy of note. The team were delighted to the start of production of the new ten-part season of My Life Is Murder which is proving to be a highly successful drama. Also notable was the premier in the UK of The Secrets She Keeps starring Laura Carmichael. It was aired in a high-profile BBC One slot and was hugely popular and well-received during lockdown."

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Taylor Maritime Investments Ltd - London-based investor in dry bulk shipping - Secures two-and three-year charters on three new vessels. Says these will deliver average annualized unlevered gross cash yields of more than 20%. Seven month charters agrees on two further seed vessels delivering average annualized unlevered gross cash yields of over 50%. "The strong earnings environment has continued in the geared dry bulk sector. As a result, and consistent with its strategic plan, TMI has secured long term charters for three ships at attractive yields, thereby enhancing earnings visibility," company says.

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CEPS PLC - Bath, England-based investment company focussed on the industrial sector - 75%-owned subsidiary Aford Awards Ltd buys business and related assets of Bracknell Engraving and Trophy Services. "AA will not acquire the limited company which is currently carrying on the BETS Business, nor any land, buildings, computer systems and associated products, software, telecommunications or network equipment owned and/or used by BETS, nor any cash, stock or debtors held by BETS, and will not acquire or assume any of BETS's existing liabilities, including in respect of taxation, employees, leases or other unfulfilled contracts," company explains. Consideration up to GBP185,000, with GBP90,000 up front and up to GBP95,000 to be paid post completion calculated by reference to sales generated by the BETS seller.

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By Paul McGowan; paulmcgowan@alliancenews.com

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