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Alpha Returns Group plc (ARGP)

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Friday 08 August, 2014

Alpha Returns Group plc

Exercise of 30 per cent option in Riche Bright

Exercise of 30 per cent option in Riche Bright

Alpha Returns Group PLC
("Alpha Returns" or the "Company")

8 August 2014

Exercise of 30 per cent option in Riche Bright Group Limited
Increase in indirect holding in MY Securities Limited to 60%

The Board of Alpha Returns, the AIM traded investing company focusing on investments in high-growth Asian economies, is pleased to announce that, following the completion yesterday of the acquisition of MY Securities Limited ("MY Securities") by its joint-venture investment vehicle, Riche Bright Group Limited ("Riche Bright"), the Company has partially exercised its option to purchase additional shares in Riche Bright in respect of a further 30 per cent. interest for a headline consideration of HK$9,000,000 of which HK$4,500,000 has been paid in cash with the balance being satisfied by the issue of 18,071,745 new ordinary shares of 0.01p each in the capital of the Company at a deemed price of 1.9125 pence per share. The consideration amounts to approximately £1,037,000 with the consideration shares (representing approximately 2.88 per cent. of the Company's enlarged issued ordinary share capital) valued at yesterday's closing price of 3.825p per share. The joint venture investment vehicle acts solely as a holding company for MY Securities which, other than a small cash balance, is Riche Bright's sole asset. The additional investment in Riche Bright takes the Company's indirect shareholding in MY Securities to 60 per cent.. MY Securities will continue to operate under its existing operational management and board control, with its two existing independent executive directors being joined by Riche Bright as a non-executive corporate director.  Further details on MY Securities were given in yesterday's announcement.

Alpha Returns retains an option to purchase up to an additional 10 per cent. interest in Riche Bright at HK$3,000,000 (currently approximately £230,000), payable in cash or, at the option of Miss Tong (the Company's joint venture partner), in shares in Alpha Returns to be  issued at a 50 per cent. discount to the closing market price on the exercise date of the option. The remaining option is exercisable at any time up to and including 30 June 2016.

Commenting on the investment, Christopher Neo, executive director of Alpha Returns, said: "We were delighted yesterday to announce the completion of the acquisition by Riche Bright of MY Securities and today the exercise of options in Riche Bright to increase our indirect interest in MY Securities to 60 per cent.. We are confident of the future prospects of MY Securities with the introduction of the Mutual Market Access (MMA) between HK and Shanghai and the implementation of strategies for business expansion. We look forward to create greater value for shareholders through our investment in MY Securities and other high-quality investments."

Application will be made for the new ordinary shares, which rank pari passu with the Company's existing issued ordinary shares, to be admitted to trading on AIM. Admission is expected to become effective and dealings to commence on or around 14 August 2014. The enlarged issued share capital of Alpha Returns with voting rights attached consists of 627,638,205 ordinary shares of 0.01p each with one vote per ordinary share. There are no shares held in Treasury. The total number of voting rights in Alpha Returns is therefore 627,638,205 , which figure may be used by shareholders (and others with notification obligations) as the denominator for the calculations by which they will determine whether they are required to notify their interest, or a change to their interest, in Alpha Returns under the Financial Conduct Authority's Disclosure and Transparency Rules.

For further information:

Alpha Returns Group plc  Christopher Neo
Executive Director
020 3286 6388
ZAI Corporate Finance Ltd (NOMAD) Peter Trevelyan-Clark/Ivy Wang 020 7060 2220
Peterhouse Corporate Finance (Broker)  Duncan Vasey/Lucy Williams 020 7220 9797

This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Alpha Returns Group plc via Globenewswire


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