Adam I, Editor
KIRKSTALL – Adammic Investment Ltd., the Emperor’s private equity fund, has released most of its capital to its majority owner by buying back over 90% of its own shares. The fund has bought over 61,000 of its shares, valued at slightly less than £7000, from the Emperor’s holding company, Imperial Holdings Ltd. The move comes as the Emperor begins to consolidate funds to provide for a deposit on his first home.
By having Adammic Investment buy back its own shares, the Crown has withdrawn the vast majority of its private equity from the fund, with the expectation that this money will help fund a deposit on a residential property.
The fund, established by the Emperor in 2017, was, as of the end of the last financial year, 98% privately owned by the Emperor, with the Treasury holding a 2% share on behalf of the Adammic public. Its investments, split between a large position in ETFs tracking the Standard & Poor 500 and smaller positions in individual stocks, began to be wound up last July; seven out of eight shares in the aforementioned S&P500 ETF were sold in February, representing the largest individual sale, and residual shares of ETFs tracking US Treasury bonds were sold earlier today. The fund now has only a single S&P500 share left as its only investment.
The sale of the vast majority of the fund’s long-term investments has long been expected to generate exceptionally high revenues and an exceptionally high tax bill to the Adammic Treasury as a result. Interim financial projections from Adammic Investment suggest realised profits of around £730 for the 2023-24 fiscal year, which would result in an unprecedented £150 tax windfall for the Treasury. The Emperor referenced this in both his Foundation Day address on the 13th and in his speech to the Liberal-Moderate conference in his capacity as party president on Saturday; the Crown clearly expects that how to spend this money is a major political question for the parties to answer.
The need to cover this anticipated tax bill, as well as the Emperor’s desire to remain the majority shareholder rather than handing over control to the Treasury (an effective nationalisation), has meant that the fund has retained £150 of cash on top of the sole remaining ETF share, to a total capitalisation of around £550, a massive reduction from its previous high of almost £7500. Of the 66,588 shares outstanding (each valued at a little over 11p), 65,139 were previously held by the Crown privately, and 61,687 have just been bought back, leaving Imperial Holdings with 3452 shares (70.4%) worth £386.90, whilst the Treasury retains its 1449 shares (29.6%) worth £162.40.
The share buyback, possibly the first in micronational history, has obviously left the fund a shadow of its former self, and its future remains uncertain. However, the timing is not random – the Express understands that, earlier today, the Emperor had an offer accepted to purchase a residental property in Normanton, West Yorkshire. The capital returned to him will, combined with other cash savings, cover the deposit required by a yet-to-be-determined British bank. A substantial reduction in dividends from the firm’s investments and other associated profits will undoubtedly have an impact on the overall Adammic economy over years to come, but it is possible that the firm’s capital will be built up again over time.
Adammic Express 