AFH Financial Group Plc
LSE : AFHP

August 21, 2013 02:00 ET

GBP 2.8 Million Equity and Bond Issue

                                                                                             21 August 2013
                                                                                               GB00B4W5WQ08
                                                     
                                          AFH FINANCIAL GROUP PLC
                                         ("AFH" or the "Company")

                                   GBP 2.8 million Equity and Bond Issue
                                                     
AFH  Financial  Group  PLC,  a  leading independent financial advisory  ("IFA")  and  discretionary  wealth
management  firm,  is pleased to announce that the Company has received firm commitments to  subscribe  for
ordinary  shares of 10 pence each in the Company ("Ordinary Shares", the "Equity Issue") and  8%  Unsecured
Bonds due 2020 ("Bonds", the "Bond Issue") for an aggregate total amount of GBP 2.8 million.

Key Points:

    *   Proceeds of the Equity Issue and the Bond Issue will be used to provide additional working capital
        for the Company and to finance potential future acquisitions
        
    *   Since AFH's June 2011 flotation the Company has completed 14 acquisitions and adviser numbers have
        grown from 53 to 120
        
    *   The Company paid a maiden dividend in May 2013 and remains debt free

Under  the  Equity Issue, the Company has received firm commitments to subscribe for a total  of  1,900,211
Ordinary  Shares  at a price of GBP 1.09 per share, to raise GBP 2,071,229.99 (gross of expenses)  for  the
Company. Of the 1,900,211 Ordinary Shares, 1,242,202 have been issued today and the balance will be  issued
to subscribers on receipt of cleared funds and completion of SIPP account arrangements.

The  Company  has also received firm commitments to subscribe for GBP 752,000 in nominal amount  of  Bonds.
Application will be made for the Bonds to be admitted to trading on the ISDX Growth Market and admission is
expected to become effective and dealings in the Bonds are expected to commence on 16 September 2013.

The  proceeds of the Equity Issue and the Bond Issue will be used to provide additional working capital for
the Company and to finance potential future acquisitions.

Following  the  issue  of the initial 1,242,202 Ordinary Shares in the Equity Issue, the  Company's  issued
share  capital  comprises 16,022,576 Ordinary Shares. A further announcement will be made on completion  of
the Equity Issue.

Commenting on the fundraising, Alan Hudson, Chairman and Chief Executive of AFH, said:

"Today's  fundraising is a strong endorsement of the Company's organic and acquisitive  business  strategy,
executed against the background of a tight credit market. We are pleased to have received this strong level
of  support  from the investment community and look forward to moving ahead with our strategy to  become  a
leader within our field. AFH is well funded, debt free, dividend paying and perfectly positioned."

      The Directors of AFH Financial Group PLC are responsible for the contents of this announcement.
                                                     
Enquiries:                                             
                                                       
AFH Financial Group PLC                                                                       01527 577 775
Alan Hudson, Chairman and Chief Executive              
www.afhfinancialgroup.com
                                                       
Peterhouse Corporate Finance Limited                                                          020 7469 0930
Mark Anwyl or Duncan Vasey                             
                                                       
Yellow Jersey PR Limited                                                                      07768 537 739
Dominic Barretto or Anna Legge                                                                07747 788 221

Contact Information

  • AFH Financial Group Plc