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Alpha Returns Group plc (ARGP)

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Tuesday 17 February, 2015

Alpha Returns Group plc

Exercise of 10 per cent. option in Riche Bright

Exercise of 10 per cent. option in Riche Bright

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

17 February 2015

Exercise of final 10 per cent option in Riche Bright Group Limited
Increase in indirect holding in MY Securities Limited to 70%

The Board of Alpha Returns, the AIM traded investing company focusing on investments in high-growth Asian economies, is pleased to announce that the Company yesterday exercised its final option to purchase an additional 10 per cent. interest in Riche Bright Group Limited ("Riche Bright"),  its joint-venture investment vehicle which itself owns 100 per cent. of MY Securities Limited ("MY Securities"). Headline consideration is HK$3,000,000 satisfied by the issue of 13,041,352 new ordinary shares of 0.01p each in the capital of the Company at a deemed price of 1.925 pence per share, being a 50 per cent. discount to the closing market price on the exercise date of the option, as specified in the joint venture agreement with the Riche Bright vendor Miss Tong Shyn Leng announced on 2 January 2014.

The consideration amounts to approximately £502,000 with the consideration shares (representing approximately 2.0 per cent. of the Company's enlarged issued ordinary share capital) valued at yesterday's closing price of 3.85p per share. This brings the total consideration paid for the Company's 70 per cent. interest to approximately £2.44 million, based on share prices and exchange rates ruling at the times of historic announcement. In its year ended 31 March 2014, MY Securities made an audited pre-tax loss of HK$554,000 (2013 profit HK$142,000) on commission income of HK$1,995,000 (2013: HK$3,097,000). Other revenues amounted to HK$2,187,000 (2013: HK$2,305,000). As announced on 29 January 2015, trading at MY Securities has significantly improved with unaudited management accounts showing a return to profitability. Unaudited commission income for the 9 month period ended 31 December 2014 showed an increase of over 250 per cent. on the audited commission income for its full year ended 31 March 2014.

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 70 per cent.. MY Securities continues to operate under its pre-existing operational management and board control, with an independent executive director being joined by Riche Bright as a non-executive corporate director and operational Hong Kong Securities and Futures Commission registered responsibility officers being long standing MY Securities employees.

Commenting on the investment, Christopher Neo, executive director of Alpha Returns, said: "Since its acquisition by Riche Bright, MY Securities has experienced strong performance as commission income grew along with an increased customer base. We expect the growth in customer base to continue whilst the Shanghai-Hong Kong Stock Connect program still presents a huge potential for MY Securities. We are therefore confident that the recent strong performance of MY Securities will continue for the full year and beyond."

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 23 February 2015. The enlarged issued share capital of Alpha Returns with voting rights attached consists of 644,200,457 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 644,200,457, 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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