Business
Investing policy / Cancellation CISX listing / EGM
Investing policy / Cancellation CISX listing / EGM.
About this update from Sancus Lending Group Limited
[{"type":"text","content":"\n \nRNS Number : 8990S GLI Finance Limited 13 November 2013 \n\n13 November 2013\n \nGLI Finance Limited\n(\"GLI Finance\" or the \"Company\")\n \nProposed amendment to the Company's investing policy, cancellation of listing of Ordinary Shares on the CISX Official List and notice of Extraordinary General Meeting\n \n \nGLI Finance, a provider of loans to US and UK based SMEs, announces that the Company intends to (i) amend the Company's investing policy (the \"Change in investing policy\") and (ii) make an application to the CISX for the cancellation of the listing of its Ordinary Shares on the CISX Official List (the \"De-listing\") (together, the \"Proposals\").\n \nBackground to the Proposals\n \nInvesting policy\n \nGiven that the Company is an investing company under the AIM Rules, it is required to have an investing policy. The Board is proposing to amend the Company's investing policy for the reasons set out below.\n \nReasons for Change in investing policy\n \nFollowing the termination of the investment management agreement between the Company and T2 Advisers, LLC in April 2013, the Company has made investments in two alternative lending platforms: Platform Black Limited and Funding Knight Limited which were announced in July and September of this year respectively. These investments complement the Company's earlier acquisition of certain of the assets of BMS Specialist Debt Fund Limited, including BMS Finance AB Limited which completed in November 2012.\n \nAll three platforms set out to provide an offering that is complementary to, rather than seeking to directly compete with, the mainstream banking sector. The Board believes that this will ensure a sustainable competitive advantage across the cycle, rather than just a cyclical play due to the weakness of many banks after the financial crisis. The Company therefore intends to continue its focus on providing finance to SMEs, and will look to exploit synergies between the complementary offerings of the platforms into which it has invested, whilst maintaining its focus on ROE-driven targets.\n \nIn light of this, the Board feels that the Company's current investing policy requires clarification in order properly to reflect the investing policy adopted by the Company. Accordingly, Shareholder approval is being s...