Cancer Chain Demands Woodford’s Fund Honors Investment Pledge
Cancer Chain Demands Woodford’s Fund Honors Investment Pledge
(Bloomberg) -- Rutherford Health Plc has called on the frozen fund of Neil Woodford to honor part of a promised investment as the disgraced stock picker’s clients learn the extent of their losses.
The Hereford-based chain of cancer centers is seeking 7.5 million pounds ($9.8 million) via a share sale to the LF Income Equity Fund, the company said in a statement Tuesday. Proceeds raised from the issue will be used for additional working capital.
Woodford made a pledge to Rutherford, previously called Proton Partners, to purchase 80 million pounds of its shares when the firm floated in February 2019. The Times reported in December that Rutherford had received 62.5 million pounds, and could soon demand the additional 17.5 million pounds. The rights issue will then leave the fund owing Rutherford 10 million pounds.
Investors trapped in Woodford’s former flagship fund, which is in the process of winding up, learned Tuesday they’ll receive an initial payout totaling 2.1 billion pounds. That’s just over half of the 3.8 billion pounds of assets the fund had under management when it was frozen in early June.
Both Rutherford and Link Fund Solutions Ltd., the administrator for Woodford’s funds, declined to comment.
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To contact the editors responsible for this story: Shelley Robinson at ssmith118@bloomberg.net, Chris Bourke
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