First Sentinel Plc Investment of Capital and AQSE Bond Updates

First Sentinel Plc Investment of Capital and AQSE Bond Updates

 

TIDMFSEN

 

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This announcement does not constitute a prospectus or offering memorandum or an

offer in relation to any securities of First Sentinel Plc or of any other

entity and should not be considered as a recommendation that any person should

subscribe for or purchase any such securities.

 

This announcement contains inside information for the purposes of the Market

Abuse Regulation (EU No. 596/2014) (“MAR”). Upon the publication of this

announcement, this inside information is now considered to be in the public

domain and shall therefore cease to be inside information.

 

2 July 2020

 

First Sentinel Plc

(“First Sentinel” or the “Company”)

 

Investment of Capital and AQSE Bond Updates – 1H 2020

 

First Sentinel (AQSE: FSEN) announces that, whilst it is finalising its

accounts for the year ended 31 December 2019 which it expects to announce by 31

July 2020, it would like to update investors on the following investments which

were made in the first half of 2020:

 

VOX MARKETS GROUP Plc

 

First Sentinel has provided a loan facility of up to GBP300,000 to Vox Markets

Group Plc (“Vox Markets”). The funds advanced under the facility bear interest

at a rate of 8% per annum and shall be repayable after a 9-month payment

holiday in 27 equal monthly instalments. First Sentinel may convert part or all

of the amounts due and outstanding from time to time into ordinary shares at

the market price and, in event of the default, at 85% of lowest 10-day VWAP

preceding the conversion notice. To date, GBP250,000 have been advanced to Vox

Markets.

 

About Vox Markets:

 

Vox Markets (Companies Number 12299399) is the holding company of Vox Markets

Limited (Companies Number 09172648), an online platform designed for investors

and professionals where they can discover and share content about listed

companies. Vox Markets has grown a community of thousands of users with an

average of 45,000 monthly users. Vox Markets podcast is an “All-time

Bestseller” for investing in the iTunes and, since its launch, it has received

over 4.5m downloads. In addition to providing the platform for stock market

professionals, Vox Markets offers digital investor relations services to public

companies, allowing them to share news and information with their investment

community in a controlled and ethical way. Vox Markets is a particularly

powerful tool for smaller listed companies that might not be covered by larger

media platforms and it helps them raise awareness and engagement among retail

investors.

 

RIDERCAM SYSTEMS LIMITED

 

First Sentinel has provided two convertible loan facilities to Ridercam Systems

Limited. Under the first facility, First Sentinel has agreed to make available

the amount of up to GBP500,000 to be advanced in tranches, which shall be repaid

no later than 1 May 2021, and is subject to an arrangement fee of GBP50,000.

Under the second facility, First Sentinel has agreed to make available the sum

of up to GBP160,000 which shall be repaid by 1 November 2020 and is subject to an

arrangement fee of GBP16,000. The interest rate applicable to both facilities was

fixed at 12% per annum. The loan facilities are further secured by way of a

debenture. To date, GBP340,000 have been advanced to Ridercam.

 

The proceeds will be applied to provide working capital for its business and

its potential IPO on the AQSE Exchange. First Sentinel may at any time convert

all or part of the capital or interest owing into a such number of ordinary

shares in the capital of Ridercam Systems Limited as it may be sufficient to

meet the outstanding amount due on the date of the conversion notice.

 

About Ridercam:

 

Ridercam Systems Limited, a company incorporated in England and Wales under no.

7490658, provides end-to-end video technology for the recording and

distribution of experiences with a robust camera and seamless payment and

distribution system.

 

DIRECT ENERGY HOLDINGS PTY LTD

 

New Leaf Capital Limited, a wholly owned subsidiary of First Sentinel, has

provided a loan facility of up to AUD 5,000,000 (app GBP2,752,115) to Direct

Energy Holdings PTY LTD. The facility shall be available for drawing in

tranches and shall be repaid at a rate of 12% per annum. In addition, New Leaf

Capital Limited is entitled to 2% of the revenue accrued by Direct Energy in

each financial year, with an additional 1% for every AUD 1,000,000

(approximatley GBP550,720) advanced over and above AUD 2,000,000 (approximatley GBP

1,101,440).

 

About Direct Energy:

 

Direct Energy is an Australian-based company, with ACN number 163758156, and a

global energy producer for homes and businesses. It focuses on the launching of

a disruptive clean coal technology that aims to offer lower costs, superior

environmental credentials and high electrical efficiencies to the coal-fired

power plant industry. At the forefront of the Direct Energy’s assets is a

direct carbon fuel cell, which is a highly efficient transfer of coal to power

without combustion.

 

MALAIKA HOLDINGS LIMITED

 

First Sentinel has invested GBP130,000 to subscribe for shares representing 7.4%

of the share capital of Malaika Holdings Limited.

 

About Malaika Holdings:

 

Malaika Holdings Limited is a private, sector agnostic investment company with

holdings in companies such as Britannia’s Gold Limited, SmartTrade App Limited

and Skinny Tonic Limited.

 

VULCAN INDUSTRIES Plc

 

As announced on 29 May 2020, First Sentinel invested GBP234,000 to acquire shares

in Vulcan Industries Plc (AQSE: VULC) at a price of 3 pence per share which was

admitted to trading on the AQSE Exchange on 1 June 2020.

 

In addition, the Company has made available a convertible loan facility of up

to GBP500,000 to Vulcan bearing interest of 12% per annum and subject to an

arrangement fee of GBP50,000 payable in shares. The facility is available for

drawdown in tranches of GBP50,000 and advances made to Vulcan can be converted

into ordinary shares at any time at the market, and in the event of default at

85% of lowest 10-day preceding the conversion notice. No drawdown has been made

to date.

 

As a result of these transactions, the Company currently holds shares

representing approximately 4.34% of Vulcan’s share capital. Since our

investment, the share price of Vulcan has increased and as at 30 June 2020 is

being traded at 4.5p.

 

About Vulcan:

 

Vulcan Industries Plc is a UK based company that consolidates traditional but

historically profitable engineering, manufacturing and industrial SMEs for

value and enhances this value through group scale synergies. The group further

optimises productivity through the introduction of new technologies and

processes in line with Industry 4.0. Vulcan has developed a network of

professionals that are able to deliver a continuous deal flow of acquisition

targets that exhibit the criteria and characteristics which support their

long-term strategy to create a large industrial conglomerate with in the next

few years.

 

STABILITECH BIOPHARMA LIMITED

 

As announced on 22 May 2020, First Sentinel has invested a total of GBP270,000 in

Stabilitech Biopharma Limited through the acquisition of 23,336 ordinary shares

giving First Sentinel an equity interest of approximately 0.675% in

Stabilitech.

 

About Stabilitech:

 

Stabilitech is a UK based biotechnology company developing next generation

vaccines and biopharmaceuticals since 2005. Currently, Stabilitech is focused

on the development of OraPro-COVID-19, an oral vaccine that provides double

immunity, can be self-administered and delivered by post.

 

Redemption of AQSE Bonds

 

On 1 February 2018, First Sentinel announced that it intended to issue up to GBP

4,000,000 sterling denominated 7.0% Secured Bonds due 28 February 2023, to be

admitted to trading on the AQSE Exchange in tranches. The Bonds are redeemable

each year, and at a 5% premium if held to maturity, and Bondholders’ interests

are partially protected by a credit insurance policy provided by Equinox

Global, which covers (subject to a GBP1 million aggregate cap per policy year)

the risk of insolvency of certain underlying debtors of the Company’s

subsidiary, Perennial Enterprise PTY Ltd. In February 2019, all AQSE Bonds were

issued and now only AQSE Bonds that have been redeemed and are held in treasury

are available to investors.

 

In the first half of 2020, First Sentinel has redeemed 135,000 AQSE Bonds. The

redemption price, comprising the principal amount and accrued interest, has

been repaid to investors in full. A total of 352,118 AQSE Bonds are currently

available to investors.

 

About First Sentinel

 

First Sentinel is an alternative investment company, registered with the FCA as

a small authorised UK AIFM, which provides growth capital for public and

private company investments. First Sentinel invests in a range of debt and

equity instruments in target portfolio companies.

 

The Company’s website is www.first-sentinel.com

 

 

For further corporate information, please contact:

 

Mr. Brian Stockbridge

CEO

First Sentinel Plc

Tel: + 44 (0) 7876 888 011

 

AQSE Corporate Advisor

Beaumont Cornish Limited

James Biddle / Roland Cornish

Tel: +44(0)20 7628 3396

 

 

 

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