ANNUAL OPTION TO REDEEM ORDINARY SHARES

YOU DO NOT HAVE TO TAKE ANY ACTION IF YOU WISH TO RETAIN YOUR SHARES

Under the Company's Articles of Association, the Company operates an annual voluntary redemption facility through which shareholders may request the redemption of all or part of their holding of redeemable ordinary shares of 0.1p each ("Ordinary Shares") for cash, as described below.

There is no requirement for shareholders to take any action should they wish to retain their Ordinary Shares.  As at close of business on 30 April 2021, the Ordinary Share price was 104.50p and the net asset value (including current period revenue) was 104.85p per Ordinary Share, therefore the Ordinary Shares were trading at a 0.33% discount.

As set out in the Company's Half Year Report, published in December 2020, it is anticipated that the next Redemption Point for shareholders will be at the end of June 2021, for those shareholders who submit Redemption Requests by the deadline on 2 June 2021. A redemption of Ordinary shares may be subject to income tax and/or capital gains tax. In particular, private shareholders who sell their shares via the redemption mechanism could find they may be subject to income tax on the gains made on the redeemed shares rather than the more usual capital gains tax on the sale of their shares in the market. Individual circumstances do vary, however, so shareholders who are in any doubt about the redemption or the action required to be taken should consult their stockbroker, accountant, tax adviser or other independent financial adviser.

The investment objective of the Company is to provide shareholders with capital growth over the long term. The Directors of the Company will be retaining their shares and not redeeming any of their Ordinary shares under the redemption facility this year.

Shareholders submitting valid requests for the redemption of Ordinary Shares will have their shares redeemed at the Redemption Price which is calculated on either of the following bases:

I.    The Directors may elect to divide each of the Company's portfolio holdings in proportion to the percentage of shareholders opting for redemption and set them aside in a Redemption Pool to be sold via the stock market. When complete, the realisation proceeds after deduction of costs would be distributed to shareholders pro rata. It should be noted that the liquidation of a Redemption Pool can be expected to take some weeks or months, and the final capital sum may not amount to the initial valuation of the Redemption Pool; or
 

II.    If the percentage of Shareholders that opt for redemption of their shares  is a modest proportion of the Company the Directors can set a Redemption Price that is equal to the Net Asset Value per Ordinary Share (including current period revenue) (the "Dealing Value") prevailing on the last business day prior to the Redemption Point.

The Directors may elect, at their absolute discretion, to calculate the Redemption Price on either of the bases set out above, or alternatively the Company may arrange for such shares to be sold in the market at the prevailing Dealing Value (subject to the Directors' discretion).The Directors are minded to approve all redemption requests unless there are exceptional reasons why this would be contrary to the interests of all shareholders.

The Directors of the Company have full discretion over the operation of the redemption facility and the calculation of the Redemption Price.

Certificated shareholders wishing to request the redemption of all or any of their ordinary shares at the proposed Redemption Point should deliver to the Company's Registrar a duly completed Redemption Request form together with their share certificate. CREST shareholders wishing to request the redemption of all or any of their ordinary shares at the proposed Redemption Point should duly complete a TTE instruction in accordance with the timetable set out below.

Previously the Company's annual voluntary redemptions would require CREST shareholders to submit a Redemption Request alongside their TTE Instruction. The Board has reviewed this process and have decided that it is no longer required for the Redemption Request to be submitted for CREST shareholders who wish to participate in the Company's annual voluntary redemption. 

Redemption Request forms are available from the Company's Registrar, Link Group, on +44 (0)371 664 0321 or by email at enquiries@linkgroup.co.uk. Calls are charged at the standard geographic rate and will vary by provider. Calls outside the United Kingdom will be charged at the applicable international rate. The helpline is open between 9.00 am - 5.30 pm, Monday to Friday excluding public holidays in England and Wales.  Please note that Link Group cannot provide any financial, legal or tax advice and calls may be recorded and monitored for security and training purposes.

The relevant dates for the June 2021 Redemption Point are outlined below: