ACON INCO RZDP : Acorn Income Fund - Results of Proposals

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    Capitalised terms used but not defined in this announcement will have the same
    meaning as set out in the Circular dated 29 November 2016.
     

    30 January 2017

                               Acorn Income Fund Limited                           

                                    (the "Company")                                

                                  Result of Proposals                              

    Further to the Company's announcements of 29 November 2016 and 16 January 2017,
    the Board announces the results of the Proposals.

    ZDP Shares

    Following implementation of the Proposals, the Company will have 21,365,221 ZDP
    Shares in issue with an attractive 3.85% per annum cost of capital over the
    approximately five year period to the ZDP Repayment Date of 28 February 2022.
    Additionally the Company will continue to hold 1,712,757 ZDP Shares in
    treasury.

    The Company has previously announced that 19,523,014 ZDP Shares were elected
    for the Continuation Offer and today announces that 1,842,207 New ZDP Shares
    will be issued through the Initial Placing at 140.0p, which represents a
    premium of 1.4% to the opening NAV per New ZDP Share.

    The Initial Placing of New ZDP Shares was significantly oversubscribed with
    demand from existing and new investors.

    The ZDP Shares will continue to trade under the TIDM of AIFZ but with effect
    from 1 February 2017 will trade under the new ISIN of GG00BYMJ7X48.

    Ordinary Shares

    Following implementation of the Proposals, the Company will have 15,916,687
    Ordinary Shares in issue. Additionally the Company will continue to hold
    1,275,972 Ordinary Shares in treasury.

    The Company announces that 5,995 New Ordinary Shares will be issued through the
    Initial Placing and Offer for Subscription at 425.05p, which represents a
    premium of 1.0% to the NAV per Ordinary Share as at the Calculation Date of 25
    January 2017.

    The Company received a greater level of demand for New Ordinary Shares through
    the Initial Placing and Offer for Subscription but, given that the market price
    has recently been trading at a significant discount to NAV and therefore to the
    Initial Issue Price, all applicants were given the opportunity to withdraw and
    the vast majority did so.

    The Ordinary Shares will continue to trade under the TIDM of AIF and the ISIN
    of GB0004829437.

    Applications for listing and admission to trading

    Applications have been made for the New Ordinary Shares to be admitted to the
    premium segments of the Official List and the Main Market, and for the New ZDP
    Shares to be admitted to the standard segment of the Official List and the
    premium segment of the Main Market. It is expected that dealings in the New
    Shares will commence at 8 a.m. on 1 February 2017.

    For further information please contact

    Broker, Financial Adviser and Sponsor:
    Numis Securities Limited
    Nathan Brown, Corporate Broking and Advisory
    Tel. [phone]
    Email: [e-mail]

    Investment Manager:
    Premier Fund Managers Limited
    Nigel Sidebottom
    Tel: [phone]
    Email: [e-mail]

    Company Secretary:
    Northern Trust International Fund Administration Services (Guernsey) Limited
    Cara De La Mare
    Tel: [phone]
    Email: [e-mail]

     

    Expected timetable

                                                                2017                      
                                                                                          
    Effective Date of the Proposals                             31 January                
                                                                                          
    Admission and dealings in the Initial Placing and Offer     8.00 a.m. on 1 February   
    Shares commence                                                                       
                                                                                          
    CREST accounts of ZDP Shareholders who elect for the        as soon as practicable    
    Continuation Option credited with amended ZDP Shares (for   after 8.00 a.m. on 1      
    holders in uncertificated form)                             February                  
                                                                                          
    CREST trade date for purchasers of New ZDP Shares           1 February                
                                                                                          
    CREST settlement date for purchasers of New ZDP Shares      3 February                
                                                                                          
    Consideration expected to be despatched to ZDP Shareholders 3 February                
    who are deemed to have elected for the Cash Option via                                
    cheque or BACS                                                                        
                                                                                          
    Despatch of (i) replacement ZDP Share certificates to ZDP   Week commencing 6 February
    Shareholders who elect for the Continuation Option (to                                
    holders in certificated form) and (ii) despatch of                                    
    certificates for the Initial Placing and Offer Shares (for                            
    holders in certificated form)                                                         
                                                                                          

    All of the times and dates in the expected timetable may be extended or brought
    forward without further notice. If any of the above times and/or dates change
    materially, the revised time(s) and/or date(s) will be notified to Shareholders
    by an announcement through a Regulatory Information Service provider.