Northern VCT changes

The Chairman on Northern VCTs 1, 2 and 3, has written to shareholders to let them know that, in the light of the government's recent Summer Budget announcement, which contained proposed restrictions on the types of new investments which may in future be treated by VCTs as qualifying holdings, the board has decided to suspend the operation of the company's Dividend Investment Scheme (DRIS) with immediate effect.

In the short term this means that the company will not be issuing new ordinary share on 24th July 2015 to those shareholders who had elected to participate in the DRIS by reinvesting the proceeds of the dividends which will be paid by the company on that date. These shareholders will instead receive their dividends in cash.

In the letter, the Chairman said that the decision had been taken with great reluctance, but until they have a better understanding of the proposals and likely effect they believed it would not be in the interests of the company or shareholders to issue additional shares at this point. A further update will be sent to shareholders in due course.