LONDON, UK: In order to bolster its portfolio of natural, wellness, and food-tech brands, S-Ventures plc has announced securing new loans totaling £2 million. The investment company, known for nurturing promising brands, has obtained £1 million each from Riverfort Global Opportunities plc and Sherwood International Holdings Ltd, the latter being an existing shareholder.
The 12-month loans carry a 15% interest rate and a 5% arrangement fee, with repayment due upon maturity. Additionally, a bridging loan from a Middle Eastern family office, initially set for repayment in May 2024, has been extended to November 2024. This extension includes an option for the lender to convert the loan into equity contingent on the completion of a proposed transaction.
Potential Acquisition and Corporate Restructuring
S-Ventures is also exploring a significant corporate restructuring that involves the potential sale of its Operating Subsidiaries to Riverfort Global Opportunities. The proposed deal, which would see RGO acquiring the subsidiaries in exchange for new RGO shares issued to S-Ventures, is valued at £3.5 million. This reverse takeover would necessitate the publication of an AIM Admission Document and shareholder approvals from both companies.
The transaction aims to provide S-Ventures’ businesses with additional capital for further investment and growth. If successful, S-Ventures plans to distribute the newly acquired RGO shares to its shareholders eventually.
Fiscal Year-End Aligned with Major Subsidiary
In line with these developments, S-Ventures has decided to synchronize its fiscal year-end with that of Juvela, its major trading subsidiary, changing it from September 30 to December 31. The company will release its unaudited second interim results for the period ending September 30, 2023, by March 2024 and its audited results for the 15-month period ending December 31, 2023, by June 2024.
This series of financial maneuvers underscores S-Ventures’ commitment to growth and value creation for its stakeholders.
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