Venture Finance Exit Profit
14 November 2006
General Capital Group plc (AiM: GENC), the independent asset and venture finance specialist, announces that it will take an exceptional profit of approximately £300,000 during the second half of its financial year ending 31 December 2006.
This profit follows the successful recent flotation of Proton Power Systems plc ("Proton"), whose shares were admitted to trading on AiM on 31 October 2006. On its first day of dealing, Proton's shares traded at a premium of 15% and remain above their issue price. Of the £300,000, £125,000 has been realised in cash,
and the balance is currently held in Proton shares, valued at the flotation price. It is General Capital's policy to recognise equity holdings in its accounts only when a third party valuation event has occurred.
Proton is a fuel cell system developer. In March 2006, Proton acquired the commercial benefits of the fuel cell technologies owned by its German associate.
This acquisition was funded using mezzanine facilities provided by General Capital. The AIM flotation of Proton has allowed the cash repayment of the General Capital loan facility and related interest in full, which amounted to £537,500.
Finally, as a consequence of Proton raising £4.67 million in new equity at flotation, General Capital has conditionally agreed to provide further secured facilities to Proton, and accordingly looks forward to working with Proton in the future.
Commenting on the transaction Jonathan Hill, Executive Deputy Chairman of General Capital, said: "We congratulate the Proton board and its advisers, with whom we have worked closely over recent weeks, on achieving admission to AiM. We purposefully elected to receive a proportion of our fees in shares as we believe the sector in which Proton is active offers excellent potential returns".
David Hickey, Non Executive Chairman of General Capital, added: "This exit further underscores the value of General Capital's Venture Finance model which, in this case, has resulted in us achieving an annualised IRR in excess of 100 percent. We are working on a number of other Venture Finance exits which have the potential to offer similar returns and look forward to further related announcements".
For Further Information:
| General Capital | |
| Mark Edworthy, Managing Director | Tel: +44 (0) 1473 252 565 |
| mark.edworthy@generalcapital.co.uk | |
| Daniel Stewart | |
| Jonny Franklin-Adams | Tel: +44 (0) 20 7776 6579 |
| jonny.franklin-adams@danielstewart.co.uk |
Media Enquiries:
| Abchurch Communications | |
| Heather Salmond / Laura Riascos | Tel: +44 (0) 20 7398 7700 |
| heather.salmond@abchurch-group.com | www.abchurch-group.com |
Notes to Editors:
About General Capital
General Capital is an independent asset and venture finance specialist established in 1991. It has developed a strong niche in an under-serviced and growing market, providing a range of lending solutions to UK SME’s. Its three core focuses are commercial asset finance, property development and bridging and venture finance.
General Capital’s financing methods provide intelligently structured bespoke solutions for each client. It is experienced in supporting businesses through all stages of development; well backed start-ups, growth situations, turnaround projects, acquisitions, and management buy outs and buy ins. General Capital also has specific and growing experience in providing finance to companies on track for AIM flotations.
In September 2006, General Capital floated on AiM by way of a reverse take-over of Clan Homes plc and is currently capitalised at approximately £20 million.