Further investment in AlbaCo Limited
Summary by AI BETAClose X
The information contained within this announcement is deemed by the Company to constitute inside information pursuant to Article 7 of EU Regulation 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 as amended.
7 October 2025
Caledonian Holdings plc
("Caledonian" or "the Company")
Further investment in AlbaCo Limited
Caledonian Holdings plc (AIM: CHP), the investment company focused on building an integrated portfolio of leading-edge technologies in the financial services sector, is pleased to announce a further investment in AlbaCo Limited ("AlbaCo"), a UK banking platform applicant.
The Company has entered into a subscription agreement to commit up to £1,000,000 of funding to AlbaCo as a prepayment towards Caledonian's participation in AlbaCo's forthcoming authorisation capital raise. This funding provides near-term working capital for AlbaCo while ensuring Caledonian's position in the wider capitalisation process. The investment has been made on commercial terms that include warrant participation and associated fees, with the warrants to be issued and fees paid being conditional on, inter alia, completion of AlbaCo's regulatory capital fundraising. This is consistent with Caledonian's strategy of securing attractive economics for its shareholders.
£500,000 has been drawn down immediately by AlbaCo and has been satisfied by Caledonian from the Company's existing cash resources.
This funding follows on from a £120,000 prepayment that was provided by Caledonian to AlbaCo in September 2025. This earlier investment will be restated on the same commercial terms as today's prepayment, ensuring consistency across the Company's support for AlbaCo's growth plans.
Caledonian has an existing 3.65 per cent. interest in AlbaCo's current issued share capital following on from the initial £1 million investment made in cash and shares earlier this year.
Jim McColl, Executive Director of Caledonian Holdings plc, commented:
"We are pleased to provide this additional investment into AlbaCo at a pivotal point in its development. The working capital funding gives AlbaCo the time and flexibility it needs to finalise its institutional fundraising, while also strengthening our position as a supportive strategic shareholder. We believe AlbaCo has the potential to become an important new entrant in UK banking, and this investment demonstrates our continued commitment to its success."
Outlook
The Board believes this further investment into AlbaCo represents an attractive opportunity to enhance Caledonian's exposure to the UK financial services sector, in line with its stated strategy. The Company looks forward to updating shareholders as AlbaCo progresses towards securing its unconditional banking licence and completing its fundraising.
Further to the announcements released by the Company on 12 September 2025 and 19 September 2025, Caledonian is also continuing discussions of its own with potential funding sources which, if successful, would enable Caledonian to participate further in AlbaCo's regulatory capital fundraising. Further updates will be released at the appropriate time.
Information on AlbaCo
AlbaCo aims to be a new bank with a clear vision and purpose - to support small and medium-sized businesses as they develop their aspirations, grow and realise their potential. AlbaCo aims to help SMEs grow by applying specialist expertise and insight while forming strong and lasting relationships with its customers. AlbaCo is not yet open to trade pending full regulatory banking approval.
For the year ended 29 February 2024, AlbaCo reported a loss after tax of approximately £8.96 million. As at 29 February 2024, AlbaCo's net assets were £6.31 million.
For further information, see albacoltd.co.uk.
For further information, please contact:
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Caledonian Holdings plc
Jim McColl, Executive Director Brent Fitzpatrick, Non-Executive Chairman |
Tel: +44 (0) 7950 389469 |
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Allenby Capital Limited (Nominated Adviser) |
Tel: +44 (0) 20 3328 5656 |
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Nick Athanas / Piers Shimwell
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Peterhouse Capital Limited (Broker) |
Tel: +44 (0) 20 7469 0930 |
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