TIDMALGW

RNS Number : 9084U

Alpha Growth PLC

09 April 2021

The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (as amended). Upon the publication of this announcement, this inside information is now considered to be in the public domain.

Alpha Growth plc

(" Alpha " or the "Company")

Trading Update Q1 2021

Alpha Growth Plc (LSE: ALGW and OTCQB: ALPGF), a leading financial services specialist in the growing longevity asset class, is very pleased to announce a continuing trend of growth and improved operational and financial performance for Q1 2021.

The Fund

Further building upon the impressive growth rate of the Black Oak Alpha Growth Fund during 2020, where the fund AUM increased by over 100%, we have achieved $5m of additional inflows into the fund representing an increase of 24% during this quarter.

Since inception 19 months ago, the Black Oak Alpha Growth Fund has achieved a net return of 15.65% and at the close of Q1 2021 AUM stood at $25.5 million.

2021 is a key year for Alpha Growth and the Company is looking to substantively increase the marketing of the Black Oak Alpha Growth Fund.

As part of this, we are extremely pleased to welcome Michael Malloy to the team. Michael has significant experience within the alternative investment sector and will be responsible for growing the Fund.

Michael stated, "I am incredibly excited to be joining Alpha Growth at this exciting stage in their evolution. I've been involved in the alternative investment sector for over 20 years and have been really impressed by the returns achieved by the Fund. By leveraging the relationships which I have with registered investment advisors, along with the implementation of our new digital marketing strategy, I'm confident that we will continue to significantly grow AUM."

Gobind Sahney, Alpha Growth Chairman stated, "Michael is a key hire for the Company, his sector knowledge and expertise further builds upon our teams' capability and I look forward to working closely with him as we continue to grow the business and deliver exceptional returns for our investors."

Commenting further, Gobind said "2020 was a foundational year for the fund and a significant growth year for the Company overall. Despite the impact from Covid, we were able to implement various strategies across the Company which are now enabling the phenomenal growth. During 2021 we will continue to further invest in these strategies to ensure we accelerate growth, increase AUM and substantially build our fee revenue."

Providence Life Assurance Company Ltd

Progressing our plan to invest in strategies that increase assets under management and long term revenue, the Directors believe that the Company's recent investment of $3,992,550 to acquire 95% of Northstar Group (Bermuda) Ltd and its wholly owned insurance company, Providence Life Assurance Company Ltd, will prove to show similar gains over the course of 2021. These gains are expected to be achieved via a build and buy strategy, we are now actively reviewing a pipeline of acquisition opportunities and would expect to make further announcements during 2021.

As previously announced, Providence has over $275 million in segregated accounts assets. That combined with the Fund, brings the assets under the group to over $300 million and provides the Company with the scale required to ensure we are an attractive proposition for investors.

We look forward to providing further updates on the Bermuda investment when appropriate.

Revolving Credit Facility to Direct Investment (RCF)

As announced last month, the asset management company which we are in discussions with regarding the RCF is now planning to directly invest in a block of life settlement assets. This is very positive for Alpha Growth as it means we will benefit from the fee revenue associated with the ongoing management of these assets without the costs of a new structure.

We are pleased to update that the asset management company is currently in the process of reviewing a block of 100 life settlements, these assets were sourced by Alpha Growth and will be managed by Alpha going forward. Once this review completes it will further add to our AUM and revenue.

The Company expects to make a further update regarding this before the end of April.

Prospectus

The acquisition of Northstar shares was supported by the recently announced placing and issuance of shares, with the remaining funds raised from the placing supporting the growth plans for all of the Company's strategies.

The Company is required to provide audited consolidated statements of Northstar/Providence for inclusion in the document. This unfortunately has delayed publication of the prospectus whilst the Company awaits the completion of the audit as, historically, Northstar has not been required to produce any audited financial information and Providence has only had to provide certain limited audited information to the Bermudan regulator.

A further announcement will be made once the Prospectus has been published.

Looking Forward

With a solid strategy in place, the Company is confident of strong growth prospects going into Q2 and continuing throughout the remainder of 2021.

The key focus areas over the coming months are :

   --    Completion of the RCF 
   --    Increasing AUM across the group 
   --    Implementation of our new digital marketing strategy 
   --    Executing on our build and buy strategy 

More information will be shared by the Company in due course.

**S **

For more information, please visit www.algwplc.com or contact the following:

 
 Alpha Growth plc                     +44 (0) 20 3959 8600 
 Gobind Sahney, Executive Chairman    info@algwplc.com 
 
 Pello Capital Limited                +44 (0) 20 7710 9610 
 Mark Treharne                        mt@pellocapital.com 
 

About Alpha Growth plc

Specialist in Longevity Assets

Alpha Growth plc is a financial advisory business providing specialist consultancy, advisory, and supplementary services to institutional and qualified investors globally in the multi-billion dollar market of longevity assets. Building on its well-established network, the Alpha Growth group has a unique position in the longevity asset services and investment business, as a listed entity with global reach. The group's strategy is to expand its advisory and business services via acquisitions and joint ventures in the UK and the US to attain commercial scale and provide holistic solutions to alternative institutional investors who are in need of specialised skills and unique access to deploy their financial resource in longevity assets.

Longevity Assets and Non-correlation

As a longevity asset, it is non-correlated to the real estate, equity capital and commodity markets. Its value is a function of time because as time passes the value gets closer to the face value of the policy. Hence creating a steady increase in the net asset value of the investment. This makes it highly attractive to investors wishing to counteract volatility within an investment portfolio and add yield.

Note: The Company only advises on and manages Longevity Assets that originate in the USA where the structured and life settlement market is highly regulated.

Forward Looking Statements Disclaimer

Certain statements, beliefs and opinions in this document are forward-looking, which reflect the Company's or, as appropriate, the Company's directors' current expectations and projections about future events. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. Forward-looking statements contained in this document regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on forward- looking statements, which speak only as of the date of this document. Readers should not treat the contents of this document as advice relating to legal, taxation or investment matters, and are to make their own assessments concerning these and other consequences, including the merits of information and the risks. Readers of this announcement are advised to conduct their own due diligence and agree to be bound by the limitations of this disclaimer.

Important Notice

The content of this announcement has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000 (FSMA). This announcement has been issued by and is the sole responsibility of the Company. The information in this announcement is subject to change.

This announcement is not an offer of securities for sale into the United States. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the Securities Act), and may not be offered or sold, directly or indirectly, in or into the United States, except pursuant to an applicable exemption from registration. No public offering of securities is being made in the United States. This announcement is not for release, publication or distribution, directly or indirectly, in or into the United States, Australia, Canada, the Republic of South Africa, Japan or any jurisdiction where to do so might constitute a violation of local securities laws or regulations (a Prohibited Jurisdiction). This announcement and the information contained herein are not for release, publication or distribution, directly or indirectly, to persons in a Prohibited Jurisdiction unless permitted pursuant to an exemption under the relevant local law or regulation in any such jurisdiction.

Pello Capital Limited (Pello) is authorised and regulated by the Financial Conduct Authority in the United Kingdom. Pello is acting solely as the Company's broker and placing agent in relation to the Placing and for no one else in connection with the contents of this announcement and will not regard any other person (whether or not a recipient of this announcement) as its client in relation to the contents of this announcement nor will Pello be responsible to anyone other than the Company for providing the protections afforded to their clients or for providing advice in relation to the contents of this announcement. Apart from the responsibilities and liabilities, if any, which may be imposed on Pello by FSMA or the regulatory regime established thereunder, Pello accepts no responsibility whatsoever, and makes no representation or warranty, express or implied, for the contents of this announcement including its accuracy, completeness or verification or for any other statement made or purported to be made by it, or on behalf of it, the Company or any other person, in connection with the Company and the contents of this announcement, whether as to the past or the future. Pello accordingly disclaims all and any liability whatsoever, whether arising in tort, contract or otherwise (save as referred to above), which it might otherwise have in respect of the contents of this announcement or any such statement.

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April 09, 2021 02:00 ET (06:00 GMT)