Overview of Spheria Emerging Companies Limited's proposal

Spheria Emerging Companies Limited (ASX: $SEC) has proposed a conditional exchange of shares for units in Spheria Australian Smaller Companies Fund to address the persistent net tangible asset (NTA) discount. Despite the Company's strong portfolio performance and improved transparency, the Board of SEC, in collaboration with Spheria Asset Management Pty Limited, aims to provide shareholders with an alternative investment option if the average NTA discount exceeds 5.00% over the Measurement Period from 1 October 2024 to 31 December 2024.

Executive Commentary on the Proposal

The Board of SEC, in response to shareholders' frustration over the persistent NTA discount, has put forth a Proposal to address this issue. The Proposal offers shareholders the opportunity to exchange their shares for units in Spheria Australian Smaller Companies Fund if the average NTA discount exceeds 5.00% over the Measurement Period. This initiative aims to provide shareholders with an alternative investment option and allows the market to determine the most suitable investment structure for SEC. Shareholders are encouraged to contact Pinnacle for any inquiries related to this announcement.

Summary of the Proposal and Outlook

Spheria Emerging Companies Limited (ASX: $SEC) has introduced a Proposal to address the persistent NTA discount by offering shareholders the option to exchange their shares for units in Spheria Australian Smaller Companies Fund if the average NTA discount exceeds 5.00% over the Measurement Period. This initiative provides shareholders with an alternative investment option and allows for a market-driven determination of the most suitable investment structure for SEC. Shareholders are not required to take any immediate action, and the Board encourages them to reach out to Pinnacle for any questions. The outcome of this Proposal will shape the future investment landscape for SEC, providing shareholders with potential alternative investment avenues.