ADVANCE AIM VALUE REALISATION COMPANY LIMITED

ADVANCE AIM VALUE REALISATION COMPANY LIMITED (''AIMVARC'') was incorporated on 22 November 2006 and is a closed-ended investment company based in Guernsey. It was admitted to trading on AIM on 20 December 2006 (ticker: AAVR) and is, for the purposes of the AIM Rules, an investing company. The company raised £37,836,344 through stock swap under the Placing and acquired 86 securities in quoted and listed companies.

AIMVARC was established to acquire principally AIM Securities from financial institutions, in consideration for which the Company issued new Shares at a price of 100p each. The Investment Manager, Progressive AIM Realisation Limited (''PARL'') believes that the portfolios of many UK institutions include holdings in AIM Securities which may comprise a fairly small percentage of their overall holdings. It may not be economically viable for the institutions to commit the time and bear the costs of becoming actively involved in such stocks. The Company provides such institutions with an opportunity to dispose of their non-core holdings and then recycle the proceeds in accordance with their investment priorities; and rationalise their portfolios and thereby improve portfolio efficiency by focusing more resources on their core investments. 

Objective

The objective of AIMVARC is to realise value from a portfolio of AIM Securities and progressively return cash to Shareholders.

The concept

The Company's approach is based on the model of three investment trusts, Advance Value Realisation Company Limited (''ADVARC''), Second Advance Value Realisation Company Limited (''SAVR'') and Third Advance Value Realisation Company Limited (''TAVR''). ADVARC and SAVR acquired only Listed Securities, whilst TAVR acquired Listed Securities and some AIM Securities. ADVARC and SAVR have both been placed in voluntary liquidation, having achieved their objectives. TAVR is managed by PARL's parent, Progressive Value Management Limited (''PVML''), as were ADVARC and SAVR. The personnel of PARL are the same team of people who manage TAVR. AIMVARC follows the concept of ADVARC, SAVR and TAVR, with some changes to reflect its investment focus on AIM Securities.

Capital structure and life of the Company

The Company's issued share capital consists of Shares and (for technical reasons of Guernsey company law; see Admission document page 24 for some differences between Guernsey and English law) founders' Shares. The Shares are redeemable by the Company at any time at a price per Share determined having regard to the NAV per Share. The Shares are not redeemable at the request of Shareholders. On a winding up, any surplus assets available for distribution to the members will be applied first in returning to Shareholders 100p, secondly in returning to the holders of the founders' Shares the capital paid up on, and any premium paid on issue of, the founders' Shares, and thirdly in returning any surplus to Shareholders. At an extraordinary general meeting to be held in the first quarter of 2010, Shareholders will be invited to consider the future of the Company and will be given an opportunity to initiate the winding up of the Company.

Guernsey Law

As the company is incorporated in Guernsey (not in the UK), it is hereby stated that the rights of shareholders of the company may be different from the rights of shareholders in a UK incorporated company. A summary of certain material differences between Guernsey Law and English Corporate Law is set out in paragraph 4 of Part IV of the Admission document dated 30 November 2006.

Transfer of Shares

Under the Articles of Association the Company may require that shares are transferred from a non-qualified person (as defined in the Articles) to a person who is not a non- qualified person. The details are summarised in paragraph 5(d) of Part IV of the Admission document dated 30 November 2006.

Dividend policy

The Board and the Investment Manager will seek to achieve capital growth rather than dividend income. It is unlikely that the Company will pay any significant dividends.

Further information concerning the Company as at 30 November 2006 can be found in the AIM Admission document which is under the SHAREHOLDER INFORMATION section on this website.

The information on this website is disclosed in accordance with Rule 26 of the AIM Rules.