Alpha Growth plc

("Alpha", or the "Company")

Periodic Corporate Update

Alpha Growth plc (LSE: ALGW), the financial services specialist in the growing Senior Life Settlement ("SLS") asset class released a podcast with an update on the Company's activity following its annual general meeting.

The podcast included discussions with Gobind Sahney, Danny Swick, and Austin King from the Company and was provided through Vox Markets, the Company's IR platform provider. The podcast provided the listener with a recap of the Company's business and revenue model with a current update on its strategies.

To provide those who were not able to listen to the podcast, the following is a summation of the podcast, with additional information in answer to questions that the Company received after its release.

Corporate Update

Since its startup and listing two years ago, the Company has embarked on a strategy of securing mandates to manage longevity assets and more specifically SLS assets. Through a combination of engagement by third party clients and/or internal origination of structured products, the objective has been to achieve fee and performance-based revenue.

The Company's aspirational objective was to achieve a certain number of advisory mandates, along with the origination of structured products. Admittedly, the time frame to achieve these objectives has evolved and stretched out as conversations became more detailed.

The nature of the advisory mandates was adapted to institutional investor requirements.  In particular, the Company developed the Hybrid product - which is a debt/equity structure for highly regulated institutions like insurance companies operating under Solvency II regulations. Arranged by EY, a round table of the top 10 insurance companies in the UK, resulted with the attendees liking either debt or the equity component.  Although the Company still maintains the ability to offer the Hybrid as a single product if and when required, in light of the feedback received, the decision was made to focus on the debt and equity components separately.

The current financial environment is highly relevant for longevity assets. Based on discussions with investors, the opinion of the Directors is that there is demand for assets, such as SLS, which are non-correlated to real estate, equity capital and commodity markets.  On the supply side for SLS, based on discussions with SLS providers, the market pullback in the US has created a need for liquidity which has brought additional policies into the market with individual policy holders selling their unneeded insurance policies.

How a SLS is non-correlated to the real estate, equity capital, and commodity markets is a function of time.  As the time that passes gets closer to the realisation of the face value of the policy, the value of the asset increases. Hence the steady increase in the net asset value of the investment over time. This makes it highly attractive to investors wishing to counteract volatility within an investment portfolio and add yield.

At the end of its FY2019, the Directors decided that the Company should focus its resources on certain specific strategies.

The following is an update on the focused strategies.

BlackOak Alpha Growth Fund - The fund had its official launch September 2019 when the seed capital was contributed. The initial administrator of the fund was acquired by Opus Fund Services in September, presenting some challenges in the timely issuance of reports. Additionally, the Company was required to wait for the completion of the historical track record review being completed by KPMG in order to begin active investor marketing. By December 2019 Opus Fund Services was up to speed and the track record review was completed. In November, the Company brought on board Austin King to exclusively work on marketing the fund and to develop a robust marketing program. Utilising his network and subscription services, such as Discovery Data, he has developed a target list of 10,000+ US registered investment advisors (RIAs) with hundreds of billions under management.  Since January 2020, both Gobind and Danny along with Austin, have conducted numerous calls with RIAs and their clients, which the Company expected to convert into allocations to the fund over February and March.   However, the market volatility delayed those allocations due to liquidity issues facing the investors.  Despite this, no investor who discussed making such an allocation has given notice of cancel such intention.  In the interim, the fund has continued to produce results with a NAV of $10.155m at the end of September 2019 and the latest NAV calculated as of March 2020 of $10.830m. This has produced a total return of 5.01% on a gross basis and 4.03% on a net basis. The current SLS composition of the fund comprises 33 policies with a combined face value of $27.4m.  In the Directors' opinion, the fund is well positioned to attract capital and continue gaining traction, even during this volatile period due to how SLS performs as a non-correlated asset. With continuous marketing still occurring and consistent results being posted monthly, the benefit of investing in SLS assets are well showcased by the fund.  A survey of 107 leading limited partners this month by Eaton Partners, a global placement company owned by Stifel, indicated that 22% of those surveyed viewed Senior Life Settlements as one of the strongest alternative assets. The results of this survey can be seen on the Company's website.

Warehouse Loan/Short Term Credit Facility - The Directors recognise that this particular strategy has drawn quite a bit of interest and commentary from the market. When the Company announced the progression of its discussions it was having with a leading UK asset manager in December, conversations and preliminary due diligence had reached a point where the commencement of documenting the intended transaction had started and required the raise of additional working capital to cover the transactional costs. The Company and the asset manager had every intention of closing the transaction in early Q1.  By the start of the market volatility due to Covid19 around the week of February 17^th, progress had been made by both parties in organising the terms and timeline around completing the transaction. However, the counterparty needed to allocate its resources to managing other parts of their business directly affected by the market turmoil.  Although, communications have continued on various levels and tasks this has caused a delay. The Company remains hopeful that once markets normalise the discussions and negotiations will pick up. The Company still expects the fee model associated with this strategy will be as anticipated. The Company is subject to certain confidentiality restrictions which preclude it from saying more or identifying the counterparty. Moreover, even if the name of the asset manager firm wasn't confidential, the Company would be reticent to state the name in the public domain as this would eliminate a strategic advantage over its competitors. As and when further details can be publicly announced, the Company will do so.

Separate Managed Accounts - The Company was approached and has entered into discussions with sponsors of proprietary funds to manage the longevity assets within those funds or what we call separate managed accounts. The Company continues to receive and have discussions with parties that wish to allocate funding, usually at a minimum of $25m, to invest in SLS, and to appoint the Company to act as the advisor or sub-advisor for a fee.  During 2019 the Company had several of these opportunities present themselves. To avoid a dilution of its resources, the Company focused on discussions that were with parties pre-vetted by, or already known to, the Directors. These opportunities had reached a stage where early 2020 was proving to be the inflection point for the discussions, particularly as the equity markets were viewed as being "toppy", with the investors wishing to diversify into non-correlated assets. Whilst market turmoil has caused liquidity issues for these investors (who would be likely to want to allocate funds currently invested in equities into SLS assets) but has not diminished their desire to diversify into SLS. The Company is in contact with these parties who recognise the executives and the Company as a valuable resource for their long-term objectives.

Working capital and impact of COVID19

The Company has sufficient working capital to complete its strategies as outlined above.  However, as can be seen from the summary above, the impact of COVID19 has had an effect on the timing of various counterparties to transact with the Company and this may impact on Company's financial results in FY20 if delays should continue for an extended period of time. However, the Company is confident that, particularly with record low interest rates, continued volatility in the equity markets and the non-correlation of SLS assets, it will be able to continue those discussions in the near terms, and also take advantage of further opportunities as and when they arise.

The Company takes this opportunity to recognise the heroic front-line workers in the fight of COVID19 and the victims. The Directors wish to give their condolences to Jason Sutherland who lost his mother last week to the Coronavirus.

The Directors thank the shareholders for their continuing support and look forward to making progress on all strategies in as timely a manner as possible.

The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.

For more information, please visit www.algwplc.com or contact the following:

About Alpha Growth plc

Specialist in Longevity Assets

Alpha Growth plc is a financial advisory business providing specialist consultancy, advisory, and supplementary services to institutional and qualified investors globally in the multi-billion dollar market of longevity assets. Building on its well-established network, the Alpha Growth Group has a unique position in the longevity asset services and investment business, as a listed entity with global reach. The Group's strategy is to expand its advisory and business services via acquisitions and joint ventures in the UK and the US to attain commercial scale and provide holistic solutions to alternative institutional investors who are in need of specialised skills and unique access to deploy their financial resource in longevity assets.

SLS Assets and Non-correlation

A SLS refers to the sale of an existing life insurance policy to a third party for a cash payment. Such a payment will be in excess of the policy's surrender value, but less than its face value. After the sale, the purchaser becomes the policy's beneficiary and assumes payment of its premiums. There are many reasons why policy holders may choose to sell their life insurance policies and sales are usually only undertaken when the insured person doesn't have a known life-threatening illness. The SLS provides individuals with policies the option to realise value from an asset under a regulated transaction. As a longevity asset, the SLS is non-correlated to the real estate, equity capital and commodity markets.  Its value is a function of time because as time passes the value gets closer to the face value of the policy. Hence creating a steady increase in the net asset value of the investment. This makes it highly attractive to investors wishing to counteract volatility within an investment portfolio and add yield.

Note: The Company only advises on and manages SLS Assets that originate in the USA where the SLS market is highly regulated.

Forward Looking Statements Disclaimer

Certain statements, beliefs and opinions in this document are forward-looking, which reflect the Company's or, as appropriate, the Company's directors' current expectations and projections about future events. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. Forward-looking statements contained in this document regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on forward- looking statements, which speak only as of the date of this document.  Readers should not treat the contents of this document as advice relating to legal, taxation or investment matters, and are to make their own assessments concerning these and other consequences, including the merits of information and the risks.  Readers of this announcement are advised to conduct their own due diligence and agree to be bound by the limitations of this disclaimer.