CORPORATE PROFILE & HISTORY
The Company will target small cap and special opportunities with a current bias towards investments in the basic resources and oil and gas sectors predominately, but not exclusively, on AIM. Such investments will focus on new and secondary equity issues but may also include some pre-IPO investments. Given the wide geographic spread of natural resources, the Company will consider opportunities across the world but will attempt to negatively screen countries where the withdrawal or realisation of investment, management and legal structure is considered difficult or too risky.
Target investment companies will be expected to have proven management and a compelling growth story, but which need cash to take them through the development stage. No single investment will exceed 15 per cent of the net assets of the Company at the time of the investment. The Company will hold investments primarily for trading purposes, though some investments may be held for longer periods. The Company intends to act, primarily, as a passive investor. After an investment has been made, it is expected that returns to Shareholders would be initially in the form of capital appreciation but the Proposed Directors will consider the payment of dividends if and when the Company has sufficient cash resources and distributable reserves.
The key strengths of the investing policy are:
- Resource prices have been robust throughout the recent financial crisis;
- Resource discoveries are very attractive for growth prospects;
- Risk management ensures that no investment will exceed more that 15 per cent of the net asset value of the Company at the time of the investment;
- Proven and experienced advisory team.
The potential risks of the investing policy are:
- Any significant and sustained falls in various resource materials and oil and gas prices will adversely affect the performance of the Company's portfolio;
- There could be a need for the Company to raise further funds in order to progress future development plans; and
- Small caps are highly volatile and may be illiquid.