Issue of Equity

The information contained within this announcement is deemed by the Company to constitute inside information pursuant to Article 7 of EU Regulation 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 as amended. Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

24 October 2024

Onward Opportunities Limited

("Onward Opportunities" or the "Company")

Issue of Equity

Subscription to raise approximately £1.0 million

Onward Opportunities Limited, the UK smaller company focussed investment company, is pleased to announce that in response to investor demand it has raised gross proceeds of approximately £1.0 million by way of a direct subscription (the "Subscription"), in doing so increasing the Company's equity base by a further 3.9 per cent. The Subscription has been primarily made by a new institutional investor, with the total subscription to the Company for 836,557 new ordinary shares (the "Subscription Shares") at a price of 117.54 pence per new ordinary share (the "Subscription Price").

The Subscription Price represents a premium of 1.7 per cent. to the Company's unaudited net asset value per ordinary share as at 18 October 2024 of 115.54 pence per existing ordinary share.

Following the Subscription, the Company remains committed to increasing its capital base on attractive terms for the Company's existing shareholders, providing greater scale for new investment opportunities and diluting the impact of overheads.

The Board and Portfolio Manager continue to believe that there are compelling structural factors underpinning the Company's investment strategy. Prevailing market conditions create an environment in which the Portfolio Manager has the ability to generate aggregated portfolio returns in excess of 15.0 per cent per annum over the long term which Onward Opportunities has so far exceeded since its launch. The net proceeds of the Subscription of approximately £0.94 million will provide the Company with additional resources with which to pursue its stated investing policy.

Onward Opportunities was launched on 30 March 2023 and was the first investment company to list on AIM since November 2021. The Company's unaudited net asset value of 115.54 pence per existing ordinary share as at 18 October 2024 reflects investment performance (NAV growth) over a c.12 month period of 15.1 per cent. (30 September 2023: 100.39 pence per ordinary share).

Laurence Hulse, Lead Fund Manager of Onward Opportunities Limited, commented: "It is encouraging that new investors are recognising that Onward Opportunities has the capacity and capability in place to accept new investment on an ongoing basis, and investors are now directing inbound interest to the Company, even in the current backdrop to UK equity markets. The capital raised adds additional dry powder heading into the UK budget at a time of market outflows, drawdowns and depressed smaller company valuations. Our core strategic objectives are to invest in attractive investment ideas and scale the company to maximise efficiencies. This raise is another step onward in both of these objectives."

Application has been made for the Subscription Shares to be admitted to trading on AIM ("Admission"). Admission is expected to occur at 8.00 a.m. on or around 28 October 2024 and the Subscription Shares will, on issue, rank pari passu in all respects with the Company's existing ordinary shares.

Total Voting Rights

On Admission, the Company will have a total of 22,392,151 ordinary shares in issue. No ordinary shares are held in treasury. The figure of 22,392,151 may be used by the Company's shareholders as the denominator in the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority's Disclosure Guidance and Transparency Rules.

Related Party Participation in the Subscription

Dowgate Wealth Limited (the "Portfolio Manager"), the Company's Portfolio Manager and a Substantial Shareholder of the Company, and its affiliates have subscribed for 106,346 Subscription Shares. As a result, and on Admission, the members of the Concert Party in the Company will collectively hold an aggregate of 10,994,001 ordinary shares in the Company, representing 49.1 per cent. of the Company's enlarged issued ordinary share capital.

The Portfolio Manager is deemed a related party of the Company pursuant to the AIM Rules for Companies (the "AIM Rules") and the Portfolio Manager's participation in the Subscription constitutes a related party transaction under Rule 13 of the AIM Rules. The directors of the Company consider, having consulted with the Company's nominated adviser, that the Portfolio Manager's participation in the Subscription is fair and reasonable insofar as shareholders are concerned.

FOR FURTHER ENQUIRIES:

To find out more, please visit: www.onwardopportunities.co.uk