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.
ADI is the new name for ReGen Therapeutics Plc, which was admiited to AIM in March 2000. A copy of the AIM admission document is available here.
On 12 January 2011, ReGen Therapeutics Plc issued a circular to shareholders (a copy of which is available here) requesting approval for the renaming of the company to Alexander David Investments Plc and for the following actions:
The demerger of the existing ReGen Therapeutics Plc business to be a stand alone business independent of ADI;
- A reduction of capital;
- Adopting of investment policy as above
- A Placing of £1.5m.
The shareholders approved the Resolutions at the General Meeting of 28 January 2011 and court approval was obtained on 16 February 2011.