Eclectic Investment Company transferred from the Main Market to Aim on 24 November.
Eclectic barely met the Main Market requirement of having 25% of its share capital in public hands. The ability to raise additional cash was hampered by the share price discount to net asset value. Eclectic would like to buy back shares in order to reduce the discount but that was difficult on the Main Market because shares in public hands would reduce.
The discount to NAV disappeared after the move to Aim was announced. This coincided with dropping the investment trust status of the company.
Eclectic seeks out undervalued investments across the world and in any sector. Unlisted securities can be up to 30% of the portfolio. Gearing is restricted to 100% of net assets. Eclectic outperformed the FTSE All Share index between May and September 2009.
At the end of September 2009, Eclectic was using £2.7m of its £3m bank facility with RBS.
National Life & Pensions (L) Ltd owns 52.2% of Eclectic.
The shares were unchanged at 95p each, which values Eclectic at £16.8m. The NAV was 90p a share at the end of October 2009.
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