Macaulay Capital PLC

23 March 2023  

Macaulay Capital PLC

("Macaulay Capital" or the "Company")

Completion of transaction

Macaulay Capital PLC (AQSE:MCAP), which was formed to originate and manage corporate transactions, raise funds from third parties, invest its own funds alongside those of external investors and to manage its investment portfolio with the aim of maximising its value, announces that it has completed its second transaction.

On 23 March 2023, Macaulay Capital and its wholly owned subsidiary, Macaulay Management Limited (together, the "Group") completed another investment, raising £1.55 million to be invested in HC 1340 Limited, a newco vehicle used to acquire an established engineering business.  The investment is represented by £52,667 in ordinary shares for 52.7% of the equity, alongside £1,498,358 in unsecured loan notes. The loan notes are scheduled to be redeemed in March 2029.

Of the £1.55 million, the Group has invested £700,000, which is higher than the anticipated £200,000 per transaction to which the Company referred in its admission document.  The Group has invested this higher amount in order to enable it to complete the transaction within the agreed exclusivity period. It is intended that approximately £500,000 of this will in due course be sold on, at cost, to third party investors identified and introduced by the Group.

Included in the £1.55m are investments by David Horner and Richard Bucknell, who have invested £145,000 and £26,025 respectively in the transaction.  As Mr Horner and Mr Bucknell are directors of the Company, these investments are deemed to be related party transactions under the AQSE Rules.  The Company's other director, Lindsay Mair, having exercised reasonable care, skill and diligence, believes that the investments by David Horner and Richard Bucknell are fair and reasonable as far as the shareholders of the Company are concerned.

The remaining funding for the transaction came from incumbent management who rolled over their existing investment as well as investing additional funds, with an aggregate value of £136,741, for 47.3% of the equity.

Related fees payable to the Group comprise an arrangement fee of £55,000 and an ongoing monitoring fee of £25,000 per annum. 

This announcement contains inside information for the purposes of the UK Market Abuse Regulation and the Directors of the Company are responsible for the release of this announcement.

ENDS 

Enquiries:

For more information please visit: www.macaulaycapital.com