Investment Company PLC Finalizes £7.5 Million Capital Raise and Shifts to Scarcity-Themed Investment Strategy

Capital Raise Completion and Share Admission

Investment Company PLC successfully completed its capital raise and secured admission of 669,390 new Ordinary Shares to the Official List and Main Market of the London Stock Exchange at 8:00 a.m. on 28 July 2026. The £7.5 million capital raise was achieved through a combination of a Placing, Offer for Subscription, and Retail Offer, marking a significant recapitalisation and signaling renewed investor confidence in the company’s revamped strategy.

Following the completion of the Tender Offer and share issuances, the total voting rights now stand at 13,508,943 Ordinary Shares. This figure is essential for shareholders to use as the denominator under the FCA's Disclosure Guidance and Transparency Rules to determine notification requirements related to their holdings in Investment Company PLC.

Tender Offer Outcome and Shareholder Engagement

The Tender Offer, announced on 10 July 2026, saw strong shareholder participation with 5,439,991 Ordinary Shares tendered, representing 59.2% of the company’s issued share capital prior to the proposals. This high level of acceptance reflects substantial shareholder support for the company’s strategic restructuring and the shift towards a scarcity-focused investment approach.

The combined effect of the Tender Offer, capital raise, and share issuances constitutes a comprehensive recapitalisation and strategic repositioning, marking a transformational milestone in the company’s history and operational direction under the new portfolio management by Dowgate Wealth Limited.

Dowgate Wealth Limited Appointed as Portfolio Manager

Investment Company PLC has appointed Dowgate Wealth Limited as its portfolio manager, a key step in implementing the company’s revised investment strategy. Dowgate Wealth Limited will manage the company’s assets across three scarcity-based pillars: strategic equity participations, foundational reserves, and inflation-protected instruments.

This appointment replaces the previous investment arrangement and highlights the company’s commitment to professional asset management and transparent execution of its new investment philosophy. The named external manager enhances accountability and clarity for shareholders regarding capital deployment under the updated framework.

Revised Scarcity-Themed Investment Objective and Policy

The company has fundamentally restructured its investment objective and policy to focus explicitly on scarcity themes and capital preservation. The new objective aims to “protect and grow the real purchasing power of Shareholders' capital over the long term,” shifting from traditional growth mandates to a long-term capital preservation strategy with an inflation-adjusted perspective.

The diversified portfolio will focus on scarcity-driven assets across three pillars, targeting absolute returns and capital preservation rather than benchmark-relative performance. This approach appeals to investors prioritizing protection against currency debasement and inflation over conventional growth metrics.

Strategic Equity Investments: Scarcity of Franchise Focus

The first pillar targets Strategic Equity Investments in companies owning finite productive capacity and operating in critical sectors such as material production, energy sovereignty, and advanced technologies. The focus is on firms with “scarcity of franchise,” characterized by irreplaceable assets, high entry barriers, and pricing power to pass through inflation.

The equity portfolio will be a concentrated 20-30 stock selection, predominantly large global companies aligned with the scarcity theme. No single equity investment will exceed 15% of Gross Asset Value, and Strategic Equity Investments may comprise up to 80% of Gross Asset Value, balancing meaningful equity exposure with risk controls.

Foundational Reserve Investments: Monetary Metals and Bitcoin

The second pillar includes Foundational Reserve Investments, encompassing monetary metals (gold and silver bullion) and Bitcoin, serving as primary hedges against currency debasement and sovereign fiscal dominance. Holdings may be direct or via physically backed exchange-traded funds, with potential investments in related equities such as mining companies and storage providers.

Investment limits allow up to 60% of Gross Asset Value in this pillar, with a maximum of 40% in monetary metals and 20% in Bitcoin and related equities. This allocation provides meaningful currency risk hedging while maintaining diversification and flexible access to the Bitcoin ecosystem.

Inflation-Protected Instruments and Defensive Allocation

The third pillar focuses on Inflation-Protected Investments, including index-linked bonds and treasury inflation-protected securities, designed to protect against negative real interest rates. These defensive holdings may constitute up to 30% of Gross Asset Value, offering a volatility-reducing mechanism when market conditions warrant.

This allocation reflects a pragmatic balance between the absolute return focus of the other pillars and defensive positioning, with tactical flexibility to manage liquidity and risk during market stress or opportunity.

Investment Restrictions and Risk Management

The amended policy enforces investment restrictions to manage concentration and ensure diversification across asset classes, geographies, and sectors. Limits include a 15% cap on individual equity investments, up to 80% allocation to Strategic Equity Investments, 60% to Foundational Reserves, and 30% to Inflation-Protected Investments. Within Foundational Reserves, monetary metals are limited to 40% and Bitcoin-related holdings to 20% of Gross Asset Value.

The policy allows for non-mandatory rebalancing in response to valuation changes, meaning breaches due solely to price movements are not considered violations. Additionally, gearing is permitted up to 20% of Net Asset Value, enabling modest leverage to enhance returns. The company may also hold unrestricted cash and equivalents for liquidity and working capital management.

Borrowing Policy and Derivative Use

Borrowing is capped at 20% of Net Asset Value, usable for medium-to-long-term investments or short-term liquidity needs, maintaining a largely unleveraged structure. Derivatives are prohibited for investment purposes but may be used for efficient portfolio management, including hedging currency or market risks.

This conservative approach restricts speculative derivative use, ensuring portfolio exposures remain transparent and aligned with the stated investment pillars.

Board Changes and Director Resignation

David Horner has resigned from the Board effective immediately, as previously disclosed in the company’s 4 June 2026 circular. This resignation is part of the governance transition accompanying the company’s strategic repositioning and new investment framework implementation.

The departure aligns with typical restructuring practices and may reflect differing views or planned succession. No further details on the resignation or replacement director have been provided. Shareholders should monitor company communications for updates on Board composition.

Shareholder Notification and Regulatory Impact of Voting Rights

The updated total voting rights of 13,508,943 Ordinary Shares are crucial for shareholders to comply with FCA Disclosure Guidance and Transparency Rules. Shareholders must use this figure to calculate their ownership percentages and notify the company and FCA when crossing thresholds such as 3%, 5%, 10%, and every 1% above 5%.

The capital raise’s increase in issued shares dilutes individual share percentages, potentially affecting notification obligations. Investors should consult the company’s website and regulatory filings for updates and refer to the detailed 4 June 2026 investment circular for guidance or seek independent advice.