announced on Monday it raised £304,500 via a subscription to advance a $100 million warehouse facility with a ‘leading UK asset manager’.
The AIM-listed financial advisory firm specialising in Senior Life Settlement (SLS) assets, told investors it was “in the final stages" of securing a revolving credit facility up to $100,000,000.
Alpha Growth said that the discussions with ‘a leading UK asset manager’ have led to agreement on life settlement valuation methodologies and acquisition strategies.
The potential $100 million facility enables the AIM-listed firm to aggregate SLS policies to be vended into investors, ‘in a sufficient transactional value that is relevant to the underlying buyers’, via either a bond offering or investment portfolio.
Gobind Sahney, Chairman of Alpha, commented: "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.”
He added: “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."
Shares in Alpha Growth were trading 16.67% higher at 1.75p on Monday morning
The subscription was placed at a price of 1.25 pence per new share, with proceeds to be used to pay pre-closing costs, including legal fees and SPV inception, the company said.
Mr. Sahney told investors: "I and the team will be in London before and after the holiday breaks to progress the above and our other strategies.”
He added: “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."
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