CYS Chrysalis Vct Plc

RNS Number:1653X
Chrysalis VCT PLC
19 January 2006

Chrysalis VCT plc

Proposed issue of new shares to raise up to #25 million

General Fund to invest in established businesses

Unique Fund to generate returns from Art and Antiques businesses

Chrysalis VCT plc ("Chrysalis" or "the Company") is proposing to raise #25
million in two new share classes to capitalise on the strong turnaround in the
Company's fortunes since its board reorganisation and the appointment of a new
management team in April 2004.

One share class ("the General Fund") will invest in established unquoted
companies for the purpose of funding expansion, acquisitions, management buy
outs or turn around opportunities. Occasionally it will invest in technology,
early stage businesses and AIM stocks. The existing VCT has been doing this
successfully for the past two years.

The other share class ("the Art & Antiques Fund") will, for the first time in a
VCT, offer the opportunity to invest in highly reputable and established art and
antiques businesses.  More importantly the investments will enjoy the benefit of
the security of the dealers trading stock and a share of dealing profits.

Uniquely in the VCT world Chrysalis has been self-managed since April 2004.  The
new management team, led by Chris Kay and working closely with former BVCA
Chairman Robert Drummond, have achieved a remarkable turnaround in the
performance of the Company.  Since April 2004 the total NAV return including
dividends has been 30.5% showing an annualised Internal Rate of Return of over
19%. This outstanding performance has prompted the Company to seek new funds to
increase the size of the existing VCT, to build on its success with further new
investments and to launch the Art & Antiques Fund.

Robert Drummond said: "The excellent performance of Chrysalis over the past
eighteen months and dividends paid of 7.5% of Net Assets in the last year, fully
vindicates our move to self management.  I am particularly excited by the
opportunities offered by the innovative Art & Antiques Fund.  This is an asset
class which we believe will be attractive to many VCT investors.  I am also
delighted to have secured the services of Spencer Ewen as adviser to this fund."

Currently Chrysalis' total management, corporate and administrative costs are
amongst the lowest in the venture capital industry.  Future administration,
corporate and management costs are not expected to exceed 2.5%.

Chrysalis' audited results for the year ended 31 October 2005 show an increase
in net assets of #6.1m before dividends totalling 5p per share for the year. Net
assets grew to #26.7m

Issue details
Proposed launch date 25 January 2006
Issue size #25m across both share classes
Offer Closes 5 April 2006
Offer Price #1.00
Up to 30 pence for each #1.00 invested targeted to be returned in cash on or
before 5 April 2010 in the Art & Antiques Fund
Up to 20 pence for each #1.00 invested targeted to be returned in cash on or
before 5 April 2010 in the General Fund
Income dividends will be payable yearly
Capital Dividends will be payable as appropriate
Minimum application of #3,000 and thereafter in multiples of #1,000.
One application form allows the investor to allocate their investment across
both or either of the Funds subject to #1,000 minimum per fund.
No minimum subscription for either Share Class so Company can allot shares
immediately
Expenses to new funds of the issue will not exceed 5.5%
3% initial commission paid to IFAs.  Annual trail commission of 0.25% paid over
4 years

Further details and copies of the Prospectus will be available from:
Kreis Consulting Limited, 180 Hope Street, Glasgow, G2 2UE. Telephone: 0141 564
1529, Fax: 0141 564 1524 email kcuk@kreisconsulting.com and from launch date may
be downloaded from www.kreisconsulting.com

For further information:

Robert Drummond, Chairman            Richard Eliott Lockhart             David Foxman/Claire Melly
Chrysalis VCT                        Kreis Consulting Ltd                Tavistock Communications
07831 091545                         0141 564 1523                       020 7920 3150
                                                                         cmelly@tavistock.co.uk


NOTES TO EDITORS

Chrysalis VCT plc

Chrysalis was listed on the London Stock Exchange in April 2001 when it raised
approximately #20.8 million.  In April 2004, following Board changes, Chrysalis'
management contract with Classic Fund Management Ltd was terminated and the
Company became self managing.  In January 2005 Chrysalis made an offer for the
whole of the issued share capital of three other VCTs for a total of #8.2
million, in the first ever VCT merger.

Chrysalis is now seeking to raise up to a further #25 million by way of an issue
of new D Shares and new E Shares at #1 per share.

D Shares (the General Fund)

The D Shares will be invested in a general portfolio of qualifying businesses to
fund expansion, acquisitions, management buy-outs or turnaround opportunities in
the same way as the existing fund.

E Shares (the Art & Antiques Fund)

The E Shares will be invested in unquoted reputable fine art and antiques
dealers principally by way of a mixture of shares and secured loan stock.  The
loan stock will be secured on the underlying physical stock of these businesses
thereby giving the investors in the E Shares greater security than might
traditionally be the case.

To advise on Art & Antiques Fund investments Chrysalis has appointed Spencer
Ewen, a London-based art consultant, historian and valuer with over 20 years'
experience in the Art World.  Mr Ewen's clients include wealthy individuals and
leading insurers and law firms.

Investors who apply for at least 10,000 E Shares will be sent catalogues and be
invited to exhibitions and dealer open days.

The team

The Company's wholly owned subsidiary, Chrysalis VCT Management Limited, is
responsible for managing funds in excess of #26 million. The team have extensive
industry backgrounds and venture capital experience.

Robert Drummond (Chairman of Chrysalis VCT plc) - formerly of 3i, Managing
Director of NatWest Ventures Limited, Managing Director of Grosvenor Development
Capital. Currently he is Chairman of Acta SpA (AIM listed) and former Chairman
of the British Venture Capital Association. Robert will have special
responsibility for the Art & Antiques Fund.

Chris Kay (Managing Director of Chrysalis VCT Management Limited) - formerly of
3i and Elderstreet Private Equity Limited has the role of Chief Investment
Officer focused primarily on current and new investments in all the funds.

Robert Wilson (Director of Chrysalis VCT Management Limited) - formerly of 3i
and ISIS, is involved in making new investments and the management of
investments in the existing fund and will be involved in investing and managing
investments for the new General Fund.

The Art & Antiques Fund will be advised by Spencer Ewen who has worked in the
art world since graduating in Art and Art History. Seymour Management
(www.seymourmanagement.co.uk), which he founded, is an art adviser and valuer
whose clients include leading insurers and law firms in the UK.

In addition to Robert Drummond, the other Chrysalis VCT board directors are:

Julie Baddeley - a non-executive director of Greggs plc and Yorkshire Building
Society. Formerly a partner of Accenture, Managing Director of Sema Group's UK
consulting group, director of Woolwich plc and a member of the Audit Commission.

Peter Harkness - currently a non-executive director of Datamonitor plc and
Executive Chairman of Knight Banner Business Information Limited, he has
considerable experience of working with venture capital investors.

The Promoters are Kreis Consulting Limited, who specialise in the design,
marketing and promotion of Tax effective Investments, including VCTs. EISs, Film
and Property Partnerships to the Intermediary Market.


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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