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Gresham House Strategic announces strategic review as chair retires

Gresham house strategic GHS

Gresham House Strategic announces strategic review as chair retires – The board of Gresham House Strategic has announced it will conduct a strategic review on the existing strategy against other strategies available, in order to determine the best method of providing growth in value for shareholders.

The review, which will consider the continuing role of Gresham House Asset Management as manager, will commence in conjunction with an independent financial adviser who is expected to be appointed shortly and is expected to conclude by the next annual general meeting, which takes place in September.

The board said: “The Board of GHS does not wish to pre-empt the results of the Strategic Review, as it is certainly possible that the existing asset management arrangements will be retained.  Nonetheless, the Board believes it is prudent to serve protective notice on GHAM.  Accordingly, the Board has today, in accordance with the investment management agreement between GHS and GHAM, served 12 months’ notice which may be revoked at any time by GHS.”

GHS chair to retire

Meanwhile, GHS chairman, David Potter, has announced he will be retiring from his role and will not be standing for re-election at September’s AGM.

The board said Potter was the “principle driving force to establish GHS after the winding up of Spark Ventures VC portfolio in 2015, and that during his time as chair, GHS has delivered strong returns and has been one of the best performing small company investment funds in the UK.

It added: “Over the last five years, the share price has approximately doubled and its discount to net asset value has narrowed considerably. The Board of GHS will miss David’s involvement and wishes him well.

“The Board of GHS is disappointed that despite the strong investment and share price performance that it has not been possible to raise additional equity due to the continued existence of the discount of the share price to net asset value. 

“The future growth of GHS is therefore limited due to the lack of availability of new funds for investment at a time when both several attractive investment opportunities exist and GHS would be a benefit from taking larger stakes in some of its existing investments.”

These developments have come after the board received a call for an extraordinary general meeting from Gresham House via Rock Nominees Limited, calling for six ordinary resolutions to be considered, including the immediate removal of Potter as chairman and non-executive director.

The full list of resolutions to be considered by the shareholders of GHS are:

1.    David Potter to be removed as Chairman and non-executive director of GHS with immediate effect.

2.    Jeston Na Nakhorn, a representative of Gresham House plc, to be appointed as a non-independent non-executive director of GHS with immediate effect.

3.    Helen Sinclair to be appointed with immediate effect as Interim non-executive Chair of GHS until the conclusion of the 2021 Annual General Meeting.

4.    Kenneth Lever to be appointed as Senior Independent non-executive director of GHS with immediate effect.

5.    The directors of GHS by 12 July 2021 to undertake a review of the strategy of GHS with a view to determining the best means of maximising value for shareholders including consideration of a realisation of the invested assets of GHS.

6.    Any appointee to the Board of GHS between the date of the requisition and the conclusion of the requisitioned Extraordinary General Meeting be removed from office as a director of GHS

GHS: Gresham House Strategic announces strategic review as chair retires

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