Kingswood Holdings Limited signed a definitive agreement to acquire an additional 13% stake in Manhattan Harbor Capital LLC for £0.73 million on August 12, 2020. Kingswood exercised its call option to acquire this additional 13% stake in Manhattan Harbor Capital LLC. The consideration will be paid in cash. Kingswood has further acquired an additional 4% interest in Kingswood US for a consideration of £0.37 million, taking the Kingswood's interest in Manhattan Harbor Capital LLC today to 24%. Subject to FINRA regulatory approval, Kingswood will contribute Kingswood Capital Partners (IBD business) and Kingswood Wealth Advisors (RIA platform) (formerly Chalice) into Kingswood US at a valuation of £3.1 million. Contemporaneous with these contributions, Kingswood will make a capital injection of £0.8 million into the combined Kingswood US business, increasing Kingswood’s interest to 50.1%. Kingswood has further plans to invest up to £6.1 million to fund organic growth and recruitment, as required by the business. To finance the immediate increase of its interest in Manhattan Harbor Capital LLC to 24%, cover due diligence and acquisition related expenses, and fund the first contingent deferred consideration payment for Chalice, Kingswood has issued a total of 2.65 million new convertible preference shares (the "New Convertible Preference Shares"), under the terms of its convertible preference share subscription agreement with HSQ INVESTMENT LIMITED, a wholly owned indirect subsidiary of funds managed and/or advised by Pollen Street Capital Limited ("Pollen Street"). The New Convertible Preference Shares represent the seventh tranche of irredeemable convertible preference shares issued pursuant to the subscription agreement and as such the total number of irredeemable Convertible Preference Shares held by Pollen Street has increased to around 21 million shares at an issue price of £1 each. Manhattan Harbor Capital is to be renamed Kingswood US. For the twelve months ended July 31, 2020, Manhattan Harbor Capital LLC reported unaudited revenue of £8.5 million, EBITDA of £1.5 million and total assets of £2.1 million. James Britton and Rishi Shah of Peel Hunt LLP acted as nominated advisors to Kingswood.