TIDMALGW
RNS Number : 2875J
Alpha Growth PLC
12 December 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")
Acquisition of Havelet Assignment Company completed
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 now
completed its previously announced (17 November 2022) acquisition
of Havelet Assignment Company Limited ("Havelet"), a Barbados based
financial services company specialising in settlement assignments
(the "Acquisition").
Key points on the Acquisition:
-- The Acquisition adds circa $9 million AUM to Alpha
-- Havelet generates revenue on a fee applied to AUM and is cash flow positive and profitable
-- Alpha intends to increase marketing of Havelet services to
the legal community with a view to materially increasing AUM
-- The Acquisition provides Alpha Growth with additional
cross-sell opportunities across its portfolio of companies, thereby
further increasing AUM
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 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
the Company's wholly-owned subsidiary Providence Life Assurance
Company ("Providence"), thereby increasing the cross-selling
opportunities across the Alpha group. The annuities aim to provide
a long-term independent stream of revenue for both Havelet and
Providence.
Gobind Sahney, Executive Chairman of Alpha, commented: "I am
very pleased to announce the successful completion of the Havelet
acquisition, and I wish to thank all of the parties involved in the
process. This was a small but strategically important acquisition
for Alpha and one which provides significant opportunities to
increase AUM both within the Havelet business and also Providence,
our Bermuda-based life insurance business.
"As we enter into the last few weeks of the year, I think it's
important to reflect on the significant progress that Alpha has
made over the past couple of years. We started January 2020 with
$10 million AUM and one primary offering, we finish 2022 with circa
$700 million of AUM and multiple new service offerings in both our
life insurance and fund business segments. A great foundation for
continued growth."
** 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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Markets Act 2000 (FSMA). This announcement has been issued by and
is the sole responsibility of the Company. The information in this
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END
ACQFLFFTFDLAIIF
(END) Dow Jones Newswires
December 12, 2022 02:00 ET (07:00 GMT)
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