China, already the world leader in eCommerce has, like the rest of the world, experienced an acceleration in online
shopping habits because of the covid-19 pandemic. It is also one of the few economies still reporting growth. Samarkand
has experienced a 166% growth in recurring revenue in the 8 months to 30 November 2020 during the height of the
pandemic compared to the same period the year before.
Expected IPO and Fundraising highlights
? Admission to trading on the Apex segment of the Aquis Stock Exchange Growth Market.
? Placing to certain institutional investors and a Subscription to qualifying investors raising gross proceeds of
c.GBP10 million.
? Immediately following Admission, the Company intends to have a free float of at least 25 per cent. of the Company's
issued share capital.
? Net proceeds raised will primarily be used to:
? further develop its Nomad Platform's functionality and services;
? expand the Group's business development activities; and
? make further strategic acquisitions.
Samarkand has appointed VSA Capital Limited ("VSA") as Broker in relation to the Fundraising and VSA will be appointed
as AQSE Corporate Adviser to the Company from Admission.
Investment Highlights
? Strong and experienced management team. Comprised of individuals who worked successfully together in previous
digital businesses, that were sold to Gaming Realms plc (AIM: GMR) achieving a significant uplift for shareholders
and investors.
? Experienced Board from eCommerce, HR and finance. It is expected on Admission the Board will include:
? Tanith Dodge (Chairperson) previous HR director for Marks & Spencer Group Plc, currently serves on the Board of
Robert Walters plc and the advisory board of PwC Bicester Village Collection, Marks & Spencer Group PLC and WH
Smiths PLC;
? Keith Higgins (Non-Executive Director), Global SVP of eCommerce and Chief Customer Development Officer Unilever
plc; and
? Jeanette Hern (Non-Executive Director) who is currently group CFO for Global Smollan Holdings, a multi-national
retail service company that employs 80,000 people worldwide.
? Strong technical ability. Technology is central to the Group's strategy and execution. David Hampstead, Group CEO,
is a trained software developer and members of the Group's executive and senior management team have degrees in
computer science.
? Strong track record of increasing growth. The Group has shown significant resilience against the backdrop of the
ongoing pandemic, maintaining triple digit sales growth despite disruptions in global supply chains, consumer
confidence and spending. Revenue during the eight-month period ended 30 November 2020 stood at GBP16.0 million,
increasing from GBP3.8 million in the same prior period.
? Strong and growing reputation for Client service and operational excellence. Recognised by the British Chamber of
Commerce in China as a finalist in the 2020 UK Exporter of the Year awards. Has a 100 per cent. client retention
rate, having received numerous positive testimonials from its clients and its Nomad Storefront solution.
? Strong partnerships enabling rapid growth. The Group works closely with a leading Chinese express company and has
launched a joint technology solution for one of Europe's biggest eCommerce companies, successfully delivered in
November 2020. The Group intends to build further key business relationships and partnerships.
? Attractive mix of products and solutions to Clients and consumers. The traditional method of entering the Chinese
eCommerce market often precludes many brands that have great potential in China from being able to consider
entering the market. The traditional method relies on working with distributors and trade partners, either placing
stock on consignment in China or selling stock on a wholesale basis. This represents a stock risk as companies
sacrifice margin and control for access to the market. The Nomad suite of solutions allows a Client to take the
first steps toward this market on lower cost basis and with fulfilment centres in the UK and Europe with a lower
risk on stock. This also means that consumers in China can experience interesting new products from companies that
would have otherwise not been able to reach them.
? Samarkand's Nomad technology is enabling the growth of own brands. The Directors believe that a combination of
brand ownership and eCommerce technology will be a competitive advantage in the future. Brand ownership allows the
Group to exercise new technology before providing these services and solutions to Clients. The Group's Nomad
technology and insight has supported its own brand, Probio7, to grow rapidly in the Chinese market, generating
GBP1.7million of additional sales through this strategy in the first 20 months of launch.
For more information, please contact:
Samarkand Group Limited Via Alma PR
David Hampstead, Chief Executive Officer
http://samarkand.global/
Eva Hang, Chief Financial Officer
VSA Capital - AQSE Corporate Adviser and Broker +44(0)20 3005 5000
Andrew Raca (Corporate Finance)
IPO@vsacapital.com
Andrew Monk (Corporate Broking)
Alma PR +44(0)20 3405 0213
Josh Royston
Robyn Fisher
samarkand@almapr.co.uk
Caroline Forde
Joe Pederzolli IMPORTANT INFORMATION
This announcement does not constitute, or form part of, any offer or invitation to sell, allot or issue, or any solicitation of any offer to purchase or subscribe for, any shares in the Company in any jurisdiction nor shall it, or any part of it, or the fact of its distribution, form the basis of, or be relied on in connection with or act as an inducement to enter into, any contract or commitment therefor.
The information contained in this announcement is for background purposes only and does not purport to be full or complete. No reliance may be placed by any person for any purpose on the information contained in this announcement or its accuracy, fairness or completeness.
Recipients of this announcement who are considering subscribing for or acquiring Ordinary Shares following publication of the UK Growth Prospectus are reminded that any such acquisition or subscription must be made only on the basis of the information contained in the final UK Growth Prospectus, which may be different from the information contained in this announcement. No reliance may be placed, for any purpose whatsoever, on the information or opinions contained in this announcement or on its completeness. To the fullest extent permitted by applicable law or regulation, no undertaking, representation or warranty, express or implied, is given by or on behalf of the Company or VSA Capital, or their respective parent or subsidiary undertakings or any of their respective directors, officers, partners, employees, agents, affiliates, representatives or advisers or any other person as to the accuracy, sufficiency, completeness or fairness of the information, opinions or beliefs contained in this announcement and, save in the case of fraud, no responsibility or liability is accepted by any of them for any errors, omissions or inaccuracies in such information or opinions or for any loss, cost or damage suffered or incurred, howsoever arising, from any use, as a result of the reliance on, or otherwise in connection with this announcement.
VSA Capital, which is authorised and regulated by the Financial Conduct Authority in the United Kingdom, is acting only for the Company in connection with the proposed Fundraising and Admission and is not acting for or advising any other person, or treating any other person as their respective client, in relation thereto and will not be responsible for providing the regulatory protection afforded to clients of VSA Capital, or advice to any other person in relation to the matters contained herein. Such persons should seek their own independent legal, investment and tax advice as they see fit. VSA Capital is acting only for the Company in connection with the matters described in this Announcement and is not acting for or advising any other person, or treating any other person as its client, in relation thereto and will not be responsible for providing the regulatory protection afforded to clients of VSA Capital or advice to any other person in relation to the matters contained herein. VSA Capital has not authorised or approved the contents of, or any part of, this announcement and no representation or warranty, express or implied, is made by VSA Capital or its affiliates as to any of its contents.
This announcement and any offer subsequently made is, and will be only addressed to, and directed at, persons who are (a) both "qualified investors" within the meaning of the UK version of the EU Prospectus Regulation (2017/1129/ EU) which is part of UK law by virtue of the European Union (Withdrawal) Act 2018 (the "UK Prospectus Regulation") and either (i) persons who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or (ii) who are high net worth entities falling within Article 49 of the Order; or (b) other persons to whom it may otherwise lawfully be communicated (all such persons under (a) and (b) together being referred to as "relevant persons"). Any investment or investment activity to which this announcement relates is available in the United Kingdom only to relevant persons.
(MORE TO FOLLOW) Dow Jones Newswires
February 08, 2021 02:01 ET (07:01 GMT)
