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Baronsmead VCTs to raise GBP4.135 million per company and GBP16.54 million in aggregate

Baronsmead is aiming to raise approximately GBP4.135 million through offers for subscription to each of its four VCTs – Baronsmead VCT plc, Baronsmead VCT 2 plc, Baronsmead VCT 3 plc and Baronsmead VCT 4 plc – before expenses, this being the Sterling equivalent of just under EUR5 million for each company.

Each company ranks among the largest VCTs in the generalist sector and between them have a combined net asset value of GBP235 million as at 30 November 2011. The Companies were established between 1995 and 2001 and each has an existing portfolio of 64 to 72 companies. As at 30 November 2011, 92% of the combined total value of the unquoted, AIM-traded and other listed investments were common to each Company’s individual investment portfolio.
The funds raised under each offer will be used by the relevant Company to make investments in accordance with its individual investment policy, maintain liquidity and enable the payment of dividends and costs without reducing the overall amounts available for investment. Amounts subscribed under each Offer will be used to purchase New Shares in the relevant Company and will enable investors to participate in the investment returns of that Company’s existing investment portfolio.
The dividend policy of each Company is to seek to maintain a regular flow of dividends to its shareholders.  Since their respective launches, the Companies have paid average annual dividends of 6.1p per share (tax free to qualifying investors).  Over the last five years the Companies have paid an average annual dividend of 7.3p per share (tax free to qualifying investors).
It is the intention that the shareholders of each Company will receive dividends twice each year, as dividends are normally paid with respect to the half-year and final results.  It is anticipated, therefore, that investors who invest in each of the four Offers will receive two dividend payments, four times a year.
“We are delighted to offer new investors and existing shareholders in Baronsmead VCT plc, Baronsmead VCT 2 plc, Baronsmead VCT 3 plc and Baronsmead VCT 4 plc the opportunity to invest into some of the largest and most established generalist VCTs, managed by one of the most experienced teams in the VCT industry,” says Peter Lawrence, chairman of Baronsmead VCT.


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