Interim Management Statement (4190S)

TIDMLGIV

RNS Number : 4190S

Longbow Growth and Income VCT

20 November 2011

Longbow Growth and Income VCT plc ("Longbow VCT" or the "Company")

INTERIM MANAGEMENT STATEMENT

for the period from 1 July 2011 to 18 November 2011

In accordance with Rule 4.3 of the UK Listing Authority's Disclosure and Transparency Rules, Longbow VCT presents its interim management statement for the period from 1 July 2011 to 18 November 2011.

New Investments

Longbow VCT completed its first investment in October 2011 - an investment of GBP135,000 in Polytherics Limited.

Polytherics has developed a technology platform which offers innovative chemistry to improve the performance of medicines. This is based around its proprietary TheraPEG, HiPEG and CyPEG patented PEGylation technology. These can aid the development of existing drugs to enable less frequent dosing, reduced side effects, maintained activity on repeat dosing and reduced costs for treatment.

Longbow VCT's investment manager, Longbow Capital LLP, first invested in Polytherics in 2007 with further investments in 2010 and 2011 from its EIS Funds alongside co-investors Imperial Innovations and The Capital Fund and most recently the Proven Health VCT.

The board of the company appears to be committed to a pathway that should make Polytherics into an increasingly attractive proposition to a larger biotech or pharma company. It could also consider merging with or acquiring other companies that may add to its offering with a view to creating a sustainable independent business with a significantly enhanced value.

Offer for Subscription

On 5 July 2011, the Company allotted 62,300 ordinary shares bringing the total number of shares in issue to 1,174,892 ordinary shares. When the Offer for Subscription closed in July 2011, a total of GBP1,162,593 had been subscribed.

Strategic Review

The board of directors ("Board") of Longbow VCT has decided to explore, in principle, the possibility of a reconstruction of the Company which could involve a rollover of the Company into another venture capital trust.

The decision has been taken in the light of Longbow VCT's investment manager, Longbow Capital LLP, informing the Board that it is not planning a further fundraising round on behalf of Longbow VCT.

The Board believes that a venture capital trust with approximately GBP1m under management is not sustainable and is therefore looking at how best the shareholders' interests may be served given Longbow Capital LLP's decision.

Share Cancellation

The Board has initiated steps to cancel 117,300 shares which were allotted under the Offer for Subscription but in respect of which cleared funds have not been received. Accordingly, there will be 1,057,592 shares in issue after the cancellation has been effected. The costs associated with the cancellation of these shares will not be borne by the Company.

Share Buy-Backs

The Company did not buy back any of its own shares during the period.

Net Asset Value per Share (unaudited)

as at 30 September 2011

 
 
                              30 Sept 2011   30 June 2011   5 April 2011 
 
Net assets attributable to 
 shareholders, GBP           1,068,517      1,022,903      1,042,616 
 
Number of shares in issue    1,174,892      1,112,592      1,112,592 
Net asset value per share, 
 p                           90.95          91.94          93.71

The initial net asset value per share as at 5 April 2011, the date of the first allotment under the Offer for Subscription, was 94.5p (excluding the impact of the dilution attributable to the issue of additional shares under an early subscription incentive scheme). As at 30 September 2011, the Company's NAV per share had decreased to 90.95p, a reduction of 3.55p per share. Of this reduction, 0.98p (27.61%) is accounted for by the issue of 12,200 early investor bonus shares and the balance, 2.57p (72.39%) is accounted for by the Company's loss for the period ended 30 September 2011 of GBP30,232.

The Board is not aware of any significant event or transaction which has occurred between 1 July 2011 and 18 November 2011 which has had a material effect on the financial position of the Company and has not been detailed above.

18 November 2011

For further information, please contact Robin Smeaton, The City Partnership (UK) Limited, Company Secretary - 0131 243 7210

This information is provided by RNS

The company news service from the London Stock Exchange

END

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