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Gate Ventures PLC (GATE)

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Tuesday 10 March, 2015

Gate Ventures PLC

First Day of Dealings

RNS Number : 7422F
Gate Ventures PLC
10 March 2015

10 March 2015

Gate Ventures Plc

("Gate Ventures" or the "Company")

First day of dealings on AIM


Gate Ventures Plc, the Investing Company formed to make investments and capitalise on investment opportunities in the media and entertainment sectors, is pleased to announce the admission today of its ordinary shares of 1p each ("Ordinary Shares") to trading on AIM and the commencement of dealings in its Ordinary Shares under the ticker GATE.


The Company has raised £3.242 million, before expenses, through a subscription and placing ("Issue") of 32,420,000 new Ordinary Shares at a price of 10p per share ("Issue Price").  The market capitalisation of the Company at the Issue Price on admission will be £3.242 million.


The Company will be using the net subscription and placing proceeds primarily to investigate and pursue potential acquisitions, perform due diligence, contribute towards professional costs associated with potential acquisitions and fund the initial working capital requirements of the Company.


Investing Policy of the Company ("Investing Policy")

Gate Ventures is a new company formed to make investments and capitalise on investment opportunities in the media and entertainment sector, focussing on, but not limiting itself to, theatre production and the music industry. The Board intends to focus on businesses using technologies such as online social media, the internet and disruptive software development. The Company intends to focus on investing in businesses or projects at any stage of development which, the Directors believe, are seeking to establish or expand their businesses or projects internationally and which offer attractive investment terms. It is intended that investments will be made primarily in the United Kingdom and China where the Directors believe that there are opportunities to acquire interests in suitable projects with high growth prospects, however other territories will also be considered as investment opportunities arise.


The Directors may consider it appropriate for the Company to take an equity interest in any proposed investment, which may range from a minority position to 100 per cent. ownership. Proposed investments may be made in either quoted or unquoted companies and structured as a direct acquisition, joint venture or as a direct interest in a project. It is not anticipated that a separate custodian, trustee or other fiduciary is appointed to hold investments made by the Company.


New investments will be held for the medium to longer term, although shorter term disposal of any investments cannot be ruled out.


There will be no limit on the number of projects into which the Company may invest, and the Company's financial resources may be invested in a number of propositions or in just one investment, which may be deemed to be a reverse takeover pursuant to Rule 14 of the AIM Rules for Companies. Where the Company builds a portfolio of related assets it is possible that there may be cross-holdings between such assets. The Company does not currently intend to fund any investments with debt or other borrowings but may do so if appropriate. Investments may be made in all types of assets and there will be no investment restrictions save as disclosed in the admission document of the Company dated 10 March 2015. There are no restrictions on the level of borrowing or leverage by the Company.


The Company's primary objective is that of securing the best possible value for the Shareholders, consistent with achieving, over time, both capital growth and income for Shareholders through developing profitability coupled with dividend payments on a sustainable basis.


The Company intends to be an involved and active investor. Accordingly, where necessary, the Company may seek participation in the management of the board of directors of a company in which the Company invests (or in the event that it is acquired then in the on-going enlarged entity) with a view to improving its performance and the use of its assets in such ways as should result in an increase in the value of such a company. The Directors hope that the resulting benefit will provide a satisfactory return to the Shareholders.


In accordance with the AIM Rules for Companies, in the event that the Company has not implemented its Investing Policy within eighteen months of Admission, it will seek the consent of its Shareholders for its Investing Policy to be continued at its next annual general meeting and on an annual basis thereafter, until such time that it has substantially implemented its Investing Policy. The Company's Investing Policy may also be varied by Shareholder approval.


The Directors believe that their broad collective business experience in the areas of acquisitions, accounting, corporate and financial management as well as their collective experience in implementing new technologies in media and entertainment businesses in the United Kingdom and China will assist them in the identification and evaluation of further suitable opportunities and will enable the Company to achieve its investing objectives.


The Directors may undertake the initial project assessments themselves with additional independent technical advice as they judge may be required. The Company proposes carrying out a comprehensive and thorough investment review and due diligence process. The Company will not have a separate investment manager.


The Directors believe that the adoption of the Investing Policy will provide the Board with the flexibility to actively seek out and acquire new investment opportunities, which the Board believes, with the injection of cash from the Issue and the Directors' expertise has the potential to create significant value for Shareholders.


The investment described in this document may not be suitable for all those who receive it. Investment in the Company is expected to target investors whose typical profile will be that of sophisticated and/or professional investors.


Geoff Morrow, Executive Chairman of Gate Ventures, commented, "The Board are delighted to bring Gate Ventures to AIM and look forward to implementing the Company's Investing Policy and to growing the Company for the benefit of our Shareholders."



Beaumont Cornish Limited is the Company's nominated adviser and joint broker and Cornhill Capital Limited is the Company's joint broker.


For further information please contact:


Gate Ventures Plc

Geoff Morrow, Executive Chairman

+44(0) 20 7887 6347

Beaumont Cornish Limited

Roland Cornish / Emily Staples

+44 (0) 20 7628 3396

Cornhill Capital Limited

Nick Bealer

+44 (0)20 7710 9610


This information is provided by RNS
The company news service from the London Stock Exchange

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