Portfolio Update: Ecomerchant Natural Building Materials Ltd - 25 August 2021

Capital for Colleagues plc / EPIC: CFCP / Market: AQSE / Sector: Investment

25 August 2021

CAPITAL FOR COLLEAGUES PLC

(‘Capital for Colleagues’ or the ‘Company’)

PORTFOLIO UPDATE – ECOMERCHANT NATURAL BUILDING MATERIALS LIMITED

Capital for Colleagues, the investment vehicle focused on opportunities in the Employee Owned Business (‘EOB’) sector, is pleased to announce that it has sold its investment in portfolio company Ecomerchant Natural Building Materials Limited (‘Ecomerchant’) for consideration of £250,000, a profit on the original investment of around 150%.

The Company is realising its investment in Ecomerchant, which is a specialist supplier of natural and environmentally sustainable building materials to the UK housing market, to facilitate a management buy-out on behalf of Ecomerchant’s directors and staff.

The consideration for the disposal is payable as to £100,000 in cash on completion, with the balance payable on a deferred basis over 5 years. The proceeds of the disposal will be applied in the ongoing fulfilment of the Company’s investment strategy and for general working capital purposes.

The portfolio value of Capital for Colleagues’ investment in Ecomerchant had previously been revised upwards to the level of the consideration receivable.

The Directors of the Company are responsible for the contents of this announcement.

**ENDS**

For further information, please visit www.capitalforcolleagues.com or contact:

Capital for Colleagues

Capital for Colleagues is an investment company focused on the UK EOB sector. The Company has a proven management team, with a wide network of contacts and affiliates, as well as established access to investment opportunities, enabling the Company to execute its strategy and capitalise on EOB-focused investment opportunities. In addition, the Company educates and assists companies that are looking to launch employee ownership schemes, advising them, amongst other things, on how to secure investment and achieve their objectives.

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).