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Oberon Investments Group plc

('Oberon' or the 'Company' or the 'Group')

Acquisition of majority stake in Custody Business

Placing to raise £1.75 million

Oberon Investments Group plc (AQSE: OBE), the boutique investment management, wealth planning and corporate broking group, is pleased to announce that it has agreed to acquire 63% of the share capital of Logic Investments Ltd ('Logic'), subject to FCA approval. 

Oberon has also raised approximately £1.75 million before expenses, through a conditional placing, via Oberon Capital, of 50,125,311 new shares of 0.5 pence each in the Company at a price of 3.5p per share (the 'Placing'). The Placing was completed at a premium to the mid-market price of the Company's shares at the close of business on 19 January 2023 and was supported by new and existing institutional shareholders. The Placing Shares are being issued under the Company's existing share authorities.

The net proceeds of the Placing will be applied to support the expansion of the Company's Corporate Advisory and Investment Management business divisions and to accelerate growth in 2023.

Acquisition of majority stake in Logic

·    Logic provides custody and administration ('Back Office') services to investment managers and financial institutions.

·    Logic has grown its Funds Under Management and Administration ('FUMA') to in excess of £275 million.

·    Post completion, Oberon will be combining its own Back Office functions with Logic, meaning the transfer of Oberon's FUMA to Logic over the next 12 months.

·    The acquisition will enable Logic to develop a market-leading Back Office service, as well as supporting Oberon's growing Investment Management and Corporate broking businesses.

·    As the business develops, it is intended that Logic will expand its services, to offer a disruptive, 'best in class' Back Office service to other external investment managers and financial institutions.

Oberon Chief Executive Officer Simon McGivern said: "We are very excited to join forces with Logic's experienced management team. This deal will provide a robust platform to support Oberon's future growth, growth which has been underpinned by providing the highest quality operational and custody services to our clients. As we progress, we aim to add additional services to Logic's platform and work with suppliers to create a market leading custody and administration offering for other like-minded institutions, to take advantage of the rapidly changing capital markets.

We are also pleased to receive strong continued support from our existing investor base, and welcome new institutional investors, with the strongly subscribed placing completed above Oberon's closing mid-price."

Note

The Placing is conditional on admission of the Placing Shares to trading on AQSE ("Admission").  Following Admission, the Placing Shares will represent, in aggregate, approximately 9.6 per cent. of the Company's enlarged issued ordinary share capital.

Admission to Trading on AQSE and Total Voting Rights Application has been made for the Placing Shares, which will rank pari passu with the existing ordinary shares, to be admitted to trading on AQSE, with admission expected to become effective on 25 January 2023. Following the Placing, the total issued share capital of the Company will be 520,249,641 ordinary shares, with no shares in Treasury. Therefore, the total current voting rights in the Company following Admission will be 520,249,641 and this figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure Guidance and Transparency Rules.

Enquiries:

Notes for editors

Oberon operates in the UK wealth and fund management sector and in the corporate broking and financial advisory sectors. Since Oberon Investments Ltd was established in April 2017, Oberon group's FUMA have grown to in excess of £1 billion as at 30 September 2022. This has been achieved organically by adding new clients and new fund managers, attracted by the emerging brand and by a number of small, selective and accretive acquisitions. Oberon Capital, the corporate broking division, provides advice and raises capital for companies from seed and early-stage funding through to IPO and beyond.