TIDMALGW
RNS Number : 6892G
Alpha Growth PLC
17 November 2022
The information communicated within this announcement is deemed
to constitute inside information as stipulated under the Market
Abuse Regulation (EU) No. 596/2014 as it forms part of UK domestic
law by virtue of the European Union (Withdrawal) Act 2018 (as
amended). Upon the publication of this announcement, this inside
information is now considered to be in the public domain.
Alpha Growth plc
(" Alpha " or the "Company")
Complementary Financial Services Company Acquisition
Alpha Growth plc (LSE: ALGW and OTCQB: ALPGF), a leading
financial services specialist in the growing life insurance and
longevity asset class, is pleased to announce that it has signed a
share purchase agreement to acquire Havelet Assignment Company
Limited ("Havelet"), a Barbados based financial services company
specialising in settlement assignments. This is a strategic
acquisition which not only expands Alpha's abilities to accumulate
assets under administration but also provides a complementary
source of business to Alpha's Providence Life Assurance Company
("Providence").
Alpha expects to complete the acquisition by 30 November 2022
and will make additional announcements in due course once
completed. The acquisition of Havelet is not subject to regulatory
approval and there are no conditions to completion other than the
satisfaction of conditions customary for a transaction of this
nature. The terms of the acquisition included the payment to the
seller of a nominal sum for the outstanding shares of Havelet and
10% of the net fees generated for a limited time period, by the
assets under administration. Havelet currently administers $9
million in assigned settlements and generates net profit margins of
52%. The company is cash flow positive. No shares were issued by
Alpha for the acquisition.
Havelet, established in 2012, provides solutions to claimants
and attorneys who are awarded settlements through litigation to
defer receipt of their settlement on a pre-tax basis. As the
settlement obligation is invested on a pre-tax basis and grows on a
tax-deferred basis, there is a much larger capital base than if the
settlement were received directly by the claimant, taxed, and then
invested. The net result is the potential for a higher after-tax
sum to be received by the claimant. Havelet is not subject to
withholding tax on dividends pursuant to Barbados-US taxation
arrangements.
Havelet's clients, established over the past ten years, can
customise deferral and payment terms; receive lump sum
distributions; and select beneficiaries through annuities purchased
and managed by Havelet, typically ranging from 10 to 20 years
depending upon the age of the claimant and the settlement type.
These annuities will be capable of being issued by Providence,
thereby increasing the cross-selling opportunities across the Alpha
group of companies. The annuities aim to provide a long-term
independent stream of revenue for both Havelet and Providence.
Going forward, Alpha plans to increase the marketing of
Havelet's solutions to its established clientele and broader legal
community in the US with a view to materially increasing the assets
under administration.
Alpha's Non-Executive Director Jason Sutherland stated: "I have
been in the annuity sector for over 20 years and very familiar with
the settlement assignment business. It's a consistently growing
field given the amount of civil litigation in the US and awarding
of large claims. Havelet is an ideal acquisition for Alpha as it
will generate service fees on its own level and opens a channel for
Providence to issue annuities and grow its fee-based assets under
administration."
Gobind Sahney, Alpha's Executive Chairman added: "Havelet is a
small but important acquisition for Alpha Growth and one which
provides significant additional opportunities to grow AUM within
both Havelet and Providence. As part of our build and buy strategy,
we continue to actively progress our acquisition pipeline and will
update shareholders on progress when appropriate."
** ENDS **
For more information, please visit www.algwplc.com or contact
the following:
+44 (0) 20 3959
Alpha Growth plc 8600
Gobind Sahney, Executive Chairman info@algwplc.com
+44 (0) 20 3328
Allenby Capital Limited 5656
Amrit Nahal (Sales and Corporate Broking)
Nick Athanas / Piers Shimwell (Corporate
Finance)
UK Investor Relations - Mark Treharne ir@algwplc.com
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.
Longevity Assets and Non-correlation
As a longevity asset, it 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 Longevity Assets
that originate in the USA where the structured and life settlement
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.
Important Notice
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authorised person within the meaning of the Financial Services and
Markets Act 2000 (FSMA). This announcement has been issued by and
is the sole responsibility of the Company. The information in this
announcement is subject to change.
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END
ACQFFDFUMEESESF
(END) Dow Jones Newswires
November 17, 2022 02:00 ET (07:00 GMT)
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