Independent corporate finance and investment advisory firm, specialising in smaller quoted and larger unquoted companies
30 June 2009
Merchant Capital has raised in excess of the minimum fundraising requirement of £500,000 in the first tranche of sales of corporate bond units in Merchant Corporate Recovery Plc (“MCR”). It is intended to raise a maximum of £2,000,000 by way of subscription at a price of £2,000 per unit. Sales of the units, each of which gives the holder £1,975 of 9.75% redeemable bonds and 2,500 ordinary shares, are continuing.
MCR will provide finance to selected distressed companies which have significant turnover and a strong debtor book and/or easily realizable assets. To minimize the risk of the investment a first charge will generally be taken over the debtors book and fixed assets of these companies. MCR will, at the same time as granting the facility, look to take a substantial perhaps majority equity stake in the companies. It is planned to realize the value of these equity stakes, either through a trade sale or through floatation.
Merchant Capital Limited
Aldermary House
10-15 Queen Street
London EC4N 1TX
United Kingdom
Tel: +44 (0)20 7332 2200