Hygea VCT

Hygea VCT plc announced on 15 December 2017 that it intends to launch an offer for subscription of a new share class (New “B” Shares) and to appoint Seneca Partners to manage this new share class, using a more generalist investment policy than the one that currently applies to the existing Ordinary share class.

The intention is to launch the offer in early 2018 to raise up to £10 million, with an over-allotment facility to raise up to a further £10 million. Existing shareholders will be offered the opportunity to subscribe for New “B” Shares at a discount.

If the offer goes ahead, the VCT will be renamed.


Hygea VCT was launched in 2001 and has raised a total of £7.8 million to date. It is fully invested, predominantly in the medtech sector. As at 31 December 2017 it has approximately £5.2m in assets.

Octopus Investments Limited retired as the investment manager in July 2007; since then, the board of the VCT has taken on responsibility for managing the investments.

Portfolio & investment policy

Shareholders have approved the change from a medtech-focused investment policy to a generalist investment policy at the General Meeting in January 2018. The new policy is to provide both income and capital return by investing in both unquoted and AIM/NEX quoted UK companies.

The Ordinary shares are invested in the following companies as at 31 December 2017 are as follows (alphabetical order):

  • Arecor Ltd
  • DxS Ltd
  • EKF Diagnostics PLC
  • Exosect Ltd
  • Fuel 3D Technologies Ltd
  • Genedrive PLC
  • Glide Pharmaceutical Technologies Ltd
  • Hallmarq Veterinary Imaging Ltd
  • ImmunoBiology Ltd
  • Insense Ltd
  • Microarray Ltd (formerly Archimed LLP)
  • Omega Diagnostics Group PLC
  • OR Productivity plc
  • Scancell Holdings PLC

The new “B” shares are expected to be invested in different companies.

What is happening to the existing Ordinary shares? 

The board will continue to manage this pool of assets and intends to distribute funds to Ordinary shareholders when exit opportunities arise. They do not envisage making any new investments from the assets in this share pool, apart from any follow-on investments in existing portfolio companies.

Seneca has agreed that the annual running costs of the VCT will be borne by the New “B” Share class for three years after the new shares are issued, meaning that the assets of the Ordinary share pool will not be depleted by those costs during that time. After this, running costs will be divided pro-rata to the net asset value of each share pool.

The offer is expected to extend the life of the VCT for at least another five years, which may benefit any Ordinary shareholders who took advantage of CGT deferral at the time of subscribing, a feature no longer available under VCT rules.  Remember tax rules change and tax benefits depend on circumstances.

The offer

Subject to the Prospectus being published, investors should be able to opt for a subscription in either or both of tax years 2017/18 and 2018/19, with the first allotment of New “B” Shares expected to take place on or before 5 April 2018.

As soon as we know more, we will update this offer page. You can register to receive VCT notifications here:

The details

Target dividend
Coming soon
Initial charge
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Initial saving via Wealth Club
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Net initial charge
Annual rebate
Funds raised / sought
Coming soon

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