Alpha Growth plc

("Alpha" or the "Company")

Trading Update Q2 2021

Alpha Growth Plc (LSE: ALGW and OTCQB: ALPGF), a leading financial services specialist in the growing uncorrelated longevity asset class is very pleased to provide a trading update for Q2 2021.

Key Highlights for the quarter.

·    Aggregate assets under control of the group have grown by circa $40m in the past quarter alone, increasing from $300m to circa $340m.

·    Providence Life Assurance Company (PLAC) has increased its balance sheet assets from $275m to over $308m, an increase of more than $33m.

·    The Black Oak Alpha Growth Fund has increased to circa $30m in assets, up from $22m at the beginning of the year and an increase of $4.5m in the past quarter alone.

·    A strategic relationship has been formed with Eaton Partners, a tier 1 capital introducer, to further accelerate growth in AUM. Eaton Partners have been instrumental in raising over $100bn in capital for funds since inception and are extremely well regarded in the industry.

·    Peter Gilman has been appointed as a special advisor to Alpha Growth. Peter is the former CEO and founder of Aegon Extraordinary Markets where he successfully built a business that generated revenues in excess of $2bn.

Alpha Growth has enjoyed an extremely strong first half of the year and continues to build upon its three main strategies; the following table outlines these strategies which have all been built around key client trends and market requirements.

Strategy: Separate Managed Accounts

As previously announced, the Company's discussions with one of the UK's largest and most prestigious asset managers to secure a short-term credit facility were almost concluded with the addition of direct asset investments by the asset manager, as well as the originally contemplated credit facility.

The UK asset manager to date has been working through internal underwriting and structuring issues which have delayed the approval for both the credit facility and direct asset purchase. We were anticipating a late April conclusion however the complexities of creating a framework for future additional investments by the asset manager, along with the challenges presented by Covid, have led to delays. Further announcements will be made in due course and we continue to work closely with them to ensure a successful conclusion.

The Company views its exercise with the UK asset manager as time well invested in developing its separate managed account strategy, this has increased the interest and exposure from other significant asset managers that we are now working with to offer a similar strategy to investors for similar asset purchase opportunities and/or credit facilities.

Alpha Growth is working with Eaton Partners, a tier 1 capital introducer and part of the global Stifel Financial Group, for introductions relating to separate managed accounts. This will substantially increase our marketing activity for this strategy and management expect that this will lead to significant growth.

The Company also continues to progress the Alpha Growth & Income (AGI) strategy, this strategy is a combination of life settlements and life contingent structured settlements hedged by a life insurance policy that is suitable for investors seeking cashflow and growth, funded in either a separate managed account or as a co-mingled fund with a minimum investment of $50 million. It is anticipated that this strategy will be complementary to PLAC's client base and separate managed account investors.

Strategy: The BlackOak Alpha Growth Fund

Further building upon the impressive growth rate of the BlackOak Alpha Growth Fund in the first quarter, the Fund closed the second quarter with circa $30 million in assets - An increase of $4.5m.

This significant increase has been driven by a combination of new investors, as well as additional contributions from existing investors. The 36% growth in net assets during the first 6 months of this year gives validation to this strategy and we expect to see continued strong growth through the remainder of this year and beyond.

With the additional contributions, the Fund has now in excess of 81 life settlements with a total face value of over $65 million and continues to add to the well diversified portfolio.

The Fund continues to grow its existing network of registered investment advisors who are the primary sources of the contributions.

Strategy: Providence Life Assurance Company Ltd.

The Directors continue to be pleased with the performance of its investment in Providence Life Assurance Company Ltd (PLAC).  The acquisition and onboarding of the Company's Directors, Gobind Sahney and Jason Sutherland, is now complete and we are pleased to announce that the assets of PLAC as of the end of May 2021 totaled $308 million, this represents a significant increase from the previously reported ~$275 million. 

As previously announced, we are planning to grow PLAC substantially by the execution of our build and buy strategy.

From a buy perspective, we continue to progress our strong pipeline of acquisition opportunities and will look forward to updating the market when appropriate.

From a build perspective, we continue to leverage PLAC's existing relationships with fund managers in the alternatives, fixed income, and equities space. We are very pleased to be working with fund managers from prestigious companies such as JP Morgan, Goldman Sachs, Coutts, Golub Capital, etc.

We are also pleased to name Peter Gilman as a special advisor to Alpha Growth. He is the founder and former CEO of AEGON's Extraordinary Markets, where he built a successful insurance business that generated annual revenues in excess of $2 billion dollars and contributed over $1 billion of embedded value to AEGON. He also developed various international strategies and HNW businesses that generated several billion dollars of revenue. We are looking forward to working closely with Peter in accelerating the growth of PLAC as well as bringing new strategies to Alpha.

Prospectus

The Company is working with its legal and accounting advisors to seek to meet the prospectus requirements against the background of an acquisition of an insurance group that has previously presented financial statements in line with Bermuda regulatory requirements but not the IFRS accounting standard which the Company adheres to. This entails liaising with the FCA as well as seeking additional accounting advice and may possibly require some additional updating of the insurance company's accounts. We appreciate the patience of our shareholders whilst we work through these issues.

We would like to clarify that the Company's closing of the transaction with the seller of Providence was originally conditional on the FCA approving the Prospectus, along with required Bermuda regulatory approvals. Once the Bermuda regulatory approvals were received, the seller wished to close and in conference with Pello, the Company's broker, the placing was completed as announced.  The placing agreement was conditional on the shareholder approval at the Company's annual general meeting to issue new shares, and the Placing Shares were issued on 15 March 2021 as stated in our announcement on 8 March 2021.   The issue of the Placing Shares was not specifically conditional on the publication of the Prospectus.

Once the FCA approves the Prospectus, the shares will be admitted for trading on the standard list of the London Stock Exchange as previously stated.  A further announcement will be made once the Prospectus has been published.

Chairman Statement

Gobind Sahney, Alpha Growth Executive Chairman, stated, "We have enjoyed another very strong quarter of growth across our business and we are incredibly excited about some of the opportunities that the group has in the second half of this year.

Despite Covid naturally delaying some decision making, we have achieved market leading growth and remain extremely confident in the prospects of the group."

Gobind continued, "We are very pleased to welcome Peter Gilman as a special advisor to Alpha Growth and look forward to working with him as we accelerate our growth plans. We are also looking forward to working with Eaton Partners as we continue to deliver upon our goal of creating a substantial and fast-growing financial services company."

The key focus areas going forward are:

·    Increase assets  across the group

·    Execute our build and buy strategy

·    Expand and grow all strategies

·    Seek new opportunities to meet client driven demand

·    Add specialized skill sets to the team

More information will be shared by the Company in due course.

** ENDS **

For more information, please visit www.algwplc.com or contact the following:

About Alpha Growth plc

Specialist in Longevity Assets

Alpha Growth plc is a financial advisory business providing specialist consultancy, advisory, and supplementary services to institutional and qualified investors globally in the multi-billion dollar market of longevity assets. Building on its well-established network, the Alpha Growth group has a unique position in the longevity asset services and investment business, as a listed entity with global reach. The group's strategy is to expand its advisory and business services via acquisitions and joint ventures in the UK and the US to attain commercial scale and provide holistic solutions to alternative institutional investors who are in need of specialised skills and unique access to deploy their financial resource in longevity assets.

Longevity Assets and Non-correlation

As a longevity asset, it is non-correlated to the real estate, equity capital and commodity markets.  Its value is a function of time because as time passes the value gets closer to the face value of the policy. Hence creating a steady increase in the net asset value of the investment. This makes it highly attractive to investors wishing to counteract volatility within an investment portfolio and add yield.

Note: The Company only advises on and manages Longevity Assets that originate in the USA where the structured and life settlement market is highly regulated.

Forward Looking Statements Disclaimer

Certain statements, beliefs and opinions in this document are forward-looking, which reflect the Company's or, as appropriate, the Company's directors' current expectations and projections about future events. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. Forward-looking statements contained in this document regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on forward- looking statements, which speak only as of the date of this document.  Readers should not treat the contents of this document as advice relating to legal, taxation or investment matters, and are to make their own assessments concerning these and other consequences, including the merits of information and the risks. Readers of this announcement are advised to conduct their own due diligence and agree to be bound by the limitations of this disclaimer.

Important Notice

The content of this announcement has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000 (FSMA). This announcement has been issued by and is the sole responsibility of the Company. The information in this announcement is subject to change.

This announcement is not an offer of securities for sale into the United States. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the Securities Act), and may not be offered or sold, directly or indirectly, in or into the United States, except pursuant to an applicable exemption from registration. No public offering of securities is being made in the United States. This announcement is not for release, publication or distribution, directly or indirectly, in or into the United States, Australia, Canada, the Republic of South Africa, Japan or any jurisdiction where to do so might constitute a violation of local securities laws or regulations (a Prohibited Jurisdiction). This announcement and the information contained herein are not for release, publication or distribution, directly or indirectly, to persons in a Prohibited Jurisdiction unless permitted pursuant to an exemption under the relevant local law or regulation in any such jurisdiction.

Pello Capital Limited (Pello) is authorised and regulated by the Financial Conduct Authority in the United Kingdom. Pello is acting solely as the Company's broker and placing agent in relation to the Placing and for no one else in connection with the contents of this announcement and will not regard any other person (whether or not a recipient of this announcement) as its client in relation to the contents of this announcement nor will Pello be responsible to anyone other than the Company for providing the protections afforded to their clients or for providing advice in relation to the contents of this announcement. Apart from the responsibilities and liabilities, if any, which may be imposed on Pello by FSMA or the regulatory regime established thereunder, Pello accepts no responsibility whatsoever, and makes no representation or warranty, express or implied, for the contents of this announcement including its accuracy, completeness or verification or for any other statement made or purported to be made by it, or on behalf of it, the Company or any other person, in connection with the Company and the contents of this announcement, whether as to the past or the future.   Pello accordingly disclaims all and any liability whatsoever, whether arising in tort, contract or otherwise (save as referred to above), which it might otherwise have in respect of the contents of this announcement or any such statement.