London,
UK -- Equities First Holdings, LLC (EFH), a global lender and a
leader in shareholder financing solutions, is pleased to announce
that Dr. Drew Nelson, chief executive of IQE plc, has concluded a
financing agreement into which he entered with EFH in 2014.
EFH
has returned all underlying collateral to Dr. Nelson, which at
repatriation are valued at more than £23.5 million, a 780% increase
in value from when the transaction was executed in October 2014.
Background
on the transaction
On
14 October 2014, IQE notified the AIM market that Dr. Nelson had
pledged 18 million shares to EFH in return for a cash loan of
£1.865m. The proceeds were used to purchase additional shares of IQE
and satisfy tax and National Insurance payable on the exercise of
share options. The 18 million shares were worth £23,580,000 at
repayment.
"This
is exactly what Equities First is here to do for its clients,"
said EFH Founder and CEO Al Christy, Jr. "By offering
market-leading terms at a fair margin and a fixed three-year
timeframe, EFH borrowers can access capital against their stock to
meet immediate capital needs without forfeiting future economic
opportunity. For the past 15 years EFH has delivered these types of
opportunities to clients around the globe, and we look forward to
continuing to serve our clients in the years to come."
Background
on EFH loan structures
EFH
is a specialist lender which provides competitive value cash loans to
publicly quoted company shareholders collateralised by portions of
their holdings. The loan term is typically three years, which allows
EFH to manage the position for value over a reasonable time frame.
EFH contractually pledges not to lend out or short sell during that
time, and all market activities are executed to have no impact on
stock price or trading volumes.
When
the loan matures and is repaid, EFH returns the shares, allowing the
borrower to keep all the upside growth in the share price during the
period. The loans are non-recourse, which means that the borrower
does not provide security in respect to their other assets.
"Clients
in the U.K. and Europe have accessed funding from EFH for a wide
range of purposes," said Jeff Smith, Senior Managing Director of
Equities First Holdings, LLC. "The key for them is the ability
to retain their interest in the underlying shares and full exposure
to any upside. EFH has a perfect track record of returning borrower
collateral on maturity and repayment, regardless of how much the
shares have increased in value."
"On
the back of arrangements such as these, EFH has seen attractive
growth in the European markets, led through our London office,"
continued Christy. "As European clients become increasingly
familiar with the EFH methodology we expect to see a further increase
in the number of transactions we conduct here."
About
Equities First Holdings
Since
2002, Equities First Holdings, LLC has provided clients with
innovative financing solutions, supplying capital against publicly
traded stock to enable clients to meet their personal and
professional financial goals. EFH provides capital against shares
traded on public exchanges around the world while offering clients
competitive loan-to-value rates and low costs of capital. Over the
past 5 years, EFH has completed more than 500 transactions and
deployed more than $1.4 billion (USD) to clients across the globe.
EFH
is a global company with offices in 10 countries, including wholly
owned subsidiaries Equities First (London) Limited, Equities First
Holdings Hong Kong Limited, Equities First Holdings Singapore
Limited, and Equities First Holdings (Australia) Pty Ltd. For
more information, visit http://www.equitiesfirst.com.
DISCLAIMER
This
release is intended for professional investors use only, and does not
constitute an offer, stated or implied, of any type. Equities First
Holdings, LLC and all of its subsidiaries work exclusively with
individuals classified as Professional or sophisticated investors.
The Equities First Holdings platform is not intended for retail
investors.
Contacts
Media
Enquiries - Brandon Russell, +1 317 429 3500
Other
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