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Northern 2 VCT announces new share issue to raise up to GBP15 million

NVM Private Equity has announced that Northern 2 VCT PLC will be launching a Public Offer of new Ordinary Shares in early November 2011, with a target of raising up to GBP15 million (before expenses).

Tim Levett, NVM Chairman, says: “NVM is one of the top performing VCT fund managers over the past five years, a period in which market conditions have been difficult. The investment team has successfully added six new growing UK businesses to our portfolio over the past twelve months, investing a total of nearly GBP30 million.  In August we announced the successful sale of our investment in Promanex Group, generating total cash returns of GBP13.7 million over a four year period from an original investment of GBP8.4 million. NVM’s track record of delivering profitable exits against a challenging economic background gives us confidence in Northern 2 VCT’s ability to meet its objective of paying an annual tax-free dividend of at least 5.5 pence per Share – a figure which has already been achieved in each of the past seven years.” 
In order to provide Shareholders with the opportunity to realise value, Northern 2 VCT also intends to launch a tender offer in November 2011. The company will offer to buy back 10% of its issued share capital; Shareholders can tender as many shares as they wish and will be entitled to have at least 10% of their shareholding repurchased by the company. Shares will be purchased at a price representing a 3% discount to the unaudited Net Asset Value (NAV) as at 30 September 2011.   
The new share issue will be promoted by VCT marketing specialists Downing Corporate Finance, who have been working with NVM in this role since 1999.
To reward loyalty and encourage early applications an “early bird” incentive equivalent to 2% of the issue price will be available for all existing NVM VCT Shareholders. 

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