AFH successful in £1.9m fundraising offer
WORCESTERSHIRE IFA AFH has successfully completed a £1.9m fundraising initiative after a positive response from investors.
The Bromsgrove-based group, which now trades on AIM, said it intended to use the proceeds to make further acquisitions outside its core areas.
It said applications from investors were received by the first closing date for unsecured loan notes and the indications were that further applications would be received through SIPPs in January 2015.
The AFH board said it had also agreed to exercise its discretion and accept applications up until January 31 to maximise opportunities for investors.
The notes will pay a coupon of 7.5% per annum and have a redemption date of December 12, 2018. For every £1,000 of notes subscribed for the noteholder will receive 200 new ordinary shares in the company at £2 each.
As a result of the applications received, the company said it would issue warrants to noteholders for 375,000 new ordinary shares. The notes are expected to be issued on December 19.
Alan Hudson, AFH’s CEO, said: “We are delighted to have raised £1.9m from the first tranche with further investment in the bonds expected in January. The funds will be utilised to accelerate AFH’s stated strategy of acquisitive growth. Selective acquisitions include both small and medium sized IFA businesses that are located outside of AFH’s traditional core geographical locations and seeking the benefits of being part of a larger organisation. With increasing funds under management AFH remains well-placed on becoming a leading UK financial planning-led wealth manager.
“Our ability to raise additional funding through the issue of these notes will facilitate the board’s ability to enhance earnings attributable to shareholders from future acquisitions whilst maintaining gearing, all of which is unsecured, at a conservative level.”
He said the group looked forward to continuing its strong operating performance and expected to announce its full-year results for year ended October 31, 2014 next March.
