Acorn Income to issue ZDP shares

Shareholders in the Acorn Income fund have voted in favour of issuing zero dividend redeemable preference shares (ZDP shares) and other proposals.

At an extraordinary general meeting held today, 100% of votes cast were in favour of ZDP shares being issued by the fund. The proceeds of the zeroes’ placing will be primarily used to repay the fund’s bank loan, with the remaining balance to be split between its smaller companies and income portfolios.

In addition, a proposal to increase the authorised share capital of the trust to £10,500,000 divided into 1 billion ordinary shares of 1p each and 50,000,000 ZDP shares of 1p each. A motion to authorise the company to make market purchase of the ZDP shares was passed with 99.98% of votes.

Proposals to grant directors the power to sell ordinary shares from the fund’s treasury and allot new ordinary shares, subject to certain limits, were approved with 96.03% of votes, as was a resolution to issue or sell ordinary shares at a discount to net asset value in specified circumstances.

Finally, the waiver of pre-emption rights was approved by shareholders, with 96.01% of votes cast being in favour.

To receive more relevant articles like this one, why not sign up to our briefings and breaking alerts by clicking here.