Capital for Colleagues plc - Investment in Morris Commercial
Announcement provided byCapital for Colleagues plc · CFCP
Capital for Colleagues plc / EPIC: CFCP / Market: AQSE / Sector: Financials
15 March 2023
CAPITAL FOR COLLEAGUES PLC
(‘Capital for Colleagues’, ‘C4C’ or the ‘Company’)
INVESTMENT IN MORRIS COMMERCIAL LTD
Capital for Colleagues, the investment vehicle focused on opportunities in the Employee Owned Business (‘EOB’) sector, is pleased to announce that the Company has successfully led an investment of £8.0 million into a substantial investment round by a new portfolio company, Morris Commercial Ltd (‘Morris Commercial’).
Morris Commercial is a
Capital for Colleagues is investing £1.0 million for 1,000,000 A ordinary shares in Morris Commercial, alongside Bill Ainscough, a non-executive Director of the Company, and TJ Morris Limited, a significant shareholder in C4C, both of whom are investing £3.5 million. The investments will be made in 3 tranches, with an initial investment of 50% of the total, followed by 2 further tranches of 25%, subject to the achievement of certain technical and commercial milestones. The investments are expected to be fully drawn down by 31 December 2023.
Substantial funding and resources have already been invested to bring the Morris JE from a concept to a production prototype, which made its debut in September 2022. The proceeds of this investment round will be used by Morris Commercial for further R&D, engineering validation, certification and productisation. The funding round will also enable Morris Commercial to recruit further expertise, and to strengthen its partnerships with core suppliers. Morris Commercial expects that deliveries of the Morris JE will commence in early 2024. Further information about Morris Commercial and the Morris JE can be found at www.morris-commercial.com.
As well as leading this investment round, C4C will also be responsible for establishing an Employee Ownership Trust at Morris Commercial. In addition, Alistair Currie will join the board of Morris Commercial as a non-executive Director.
Bill Ainscough is a non-executive Director of Capital for Colleagues and his co-investment alongside the Company is therefore a Related Party Transaction for the purposes of the AQSE Growth Market Apex Rulebook. The Directors of the Company, other than Mr Ainscough, having exercised reasonable care, skill and diligence, consider that the co-investment by Mr Ainscough is fair and reasonable as far as the shareholders of the Company are concerned.
Commenting on the investment in Morris Commercial, Alistair Currie, Chief Executive of Capital for Colleagues, said:
“We are delighted to have successfully led this significant investment into Morris Commercial, alongside existing stakeholders in Capital for Colleagues. Our combined investment will enable Morris Commercial to finalise its production planning, as it continues its mission to reinvent the iconic Morris J-Type, using state of the art, zero emission technology and classic design.
We look forward to working with Qu Li and her team as they move towards delivery of the innovative Morris JE.”
Dr Qu Li, Chief Executive Officer of Morris Commercial, commented:
“We are truly grateful that our new investors share our vision and beliefs and their confidence in Morris Commercial confirms the strength of our business model and our sustainability goals. With this new investment, we will be able to accelerate product development and take the Morris JE to market. I am very excited about the future for Morris Commercial and look forward to delivering our iconic van to our many thousands of pre-registered customers around the globe with the support of our new investment partners.”
The Directors of the Company are responsible for the contents of this announcement.
For further information, please visit www.capitalforcolleagues.com or contact:
CAPITAL FOR COLLEAGUES PLC
Richard Bailey, Chairman
Alistair Currie, Chief Executive
John Lewis, Finance Director
01985 201 980
|PETERHOUSE CAPITAL LIMITED
|020 7469 0930|
Capital for Colleagues plc
Capital for Colleagues is an investment company focused on the
Market Abuse Regulation (MAR) Disclosure
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation EU 596/2014 as it forms part of retained EU law (as defined in the European Union (Withdrawal) Act 2018).
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