Northern AIM VCT, the AIM venture capital trust managed by Northern Venture Managers is seeking to raise up to £10m by way of a series of 10% top up share offers. The proposed fund raising was approved by Northern AIM VCT’s shareholders at the company’s annual general meeting on 21 January and, if not previously fully subscribed, the share offers will close on 5 April 2005 (for allotment in the 2004/2005 tax year) and 28 April 2005 (for allotment in the 2005/2006 tax year), unless extended.
New ordinary shares will be issued initially at a price of 70 pence per share, with the offer price being reviewed periodically to reflect movements in the underlying net asset value (NAV) of the trust. The unaudited NAV at 31 December 2004 was 65.6 pence per share.
The additional capital will enable Northern AIM VCT to take advantage of the buoyant new issue market on AIM and the strong flow of new unquoted investment opportunities. Investors will be eligible for the new 40% up-front income tax relief, introduced in the 2004 Finance Act, on their subscriptions.
Northern AIM VCT was launched in 2000 and has a net asset value of £13.8m. The fund invests primarily in new issues on the Alternative Investment Market (AIM), as well as in pre-flotation placings by unlisted companies and later stage venture capital investments. The 15 largest holdings in Northern AIM’s portfolio at 31 October 2004 were valued in aggregate at 58% over cost, with the trust declaring dividends totaling 6.8 pence per share in 2004.