Shareholder Information

Firstly, we would like to thank all of our investors for their patience as we try and resolve the
issues we are working through with the business.  We completely understand that the news
they are receiving is not positive and that in turn is both stressful and upsetting for many. 


Astute Capital’s success over the years has been built on the support we have received from
our investors, and we have not taken that for granted as the business has fallen on hard
times over the last few years. This is why the management team continues to work to recoup
investor value and will not be taking any financial returns from the Company until all
remaining funds have been returned to creditors and Ordinary A shareholders first.


As promised please find below the FAQs:

FAQs

What is the current situation of the business?

The board of Astute Capital Plc (“The Company”) has decided to cease operations with immediate effect and for the foreseeable future.

Whilst The Company will cease operations in terms of delivering against the agreed business plan, the Company is committed to maintaining its continued effort to recoup and return as much value as possible for the existing shareholders.

As such, The Company has appointed an independent agency to recover outstanding debt. Given the Company’s limited resources, this is the most efficient and cost-effective way forward.

The Company is also pursuing a number of ongoing investigations and legal claims.

 

What has happened to my investment?

As agreed in March 2022, all investments were converted into Equity in the Company. At the time, this was done at an independently agreed valuation of £55m. This valuation was based upon the ability of the Company to raise sufficient new capital, and execute against a pipeline of potential senior debt deals.

Unfortunately, this has not been achieved to date, and this has had a direct impact on the value of the business.

We cannot provide an accurate valuation at this stage; however, it will be significantly less than the valuation stated in March 2022. We will provide an update as soon as we have more clarity.

 

What are my Shares worth?

As mentioned above, we cannot provide an accurate valuation of the business or individual share price at this stage. However, it will be significantly less than the valuation stated in March 2022 and based solely on the company’s recoverable assets and legal claims.

We will provide an update as soon as we have more clarity.

 

Will I get anything back?

Whilst The Company has ceased operations in terms of delivering against the agreed business plan for the foreseeable future, the Company is committed to maintaining its continued effort to recoup and return as much value as possible for the existing shareholders. We are pursuing a number of legal claims and have appointed an independent investigations and recovery collection agency to recover outstanding debt.

The timeframe for this activity is not set in stone and may take up to 18 months to resolve fully. There are a number of moving parts as set out above, and each one must run its course.

We are not able to give you any exact figures at this stage, however, the Company is committed to recouping all existing value and ruminating both creditors and Ordinary A shareholders as a priority.

We will provide an update as soon as we have more clarity.

How long is this going to take?

The timeframe for this activity is not set in stone and may take up to 18 months to resolve fully. There are a number of moving parts as set out above, and each one must run its course.

 

Is there anyone I can speak to?

Due to the lack of resources available we will be unable to answer your questions and concerns directly. Therefore, we request that any additional questions you may have, be sent via email to FAQs@astutecapital.co.uk. We will endeavour to answer them via this FAQ page.

 

What is happening to investors money?

When it was agreed by an extraordinary majority of bondholders (93%) in March 2022, to take the business in a new direction, all existing bonds were converted into equity in the Company. At this time the company was given an agreed independent valuation by a leading firm of accountants of £55m (March 2022) based on the company’s new business model.

Each investor was given shares in accordance with the value proposition that would equate to 2x return based on the projected year 3 valuation as per the valuation report.

Subsequently, as the company has struggled to achieve its business objectives -including a public listing, and with the addition of significant unexpected costs as set out in the recent Investor Communication – the valuation of the company has fallen away dramatically.

The business is still focussed and committed to recouping as much value as possible for each of the investors, but this will take time.

 

Who are Ordinary A Shareholders and how do these shares differ from Ordinary B Shares?

All former bondholders in Astute Capital who have received shares in exchange for their bonds will have Ordinary A Shares. Ordinary A Shares hold a liquidation priority over Ordinary B Shares which ensures that upon selling the business or liquidating its assets, Ordinary A shareholders will receive distribution of funds ahead of ordinary B Shareholders.