Chrysalis Investments has sold out of its stake in Revolution Beauty, after shares in the struggling makeup and skincare group were suspended from trading in September.
According to a London Stock Exchange announcement on Friday 25 November, the off-market deal was worth approximately £5m. The value of Chrysalis’ initial investment in Revolution, which co-managers Nick Williamson and Richard Watts made in July 2021, was nine times larger, at £45m.
The trust was approached for comment on the sell-off but did not provide any.
Revolution announced on 2 August that additional time would be required to complete its auditing process and, after confirmation that it would not meet a revised deadline for the publication of its annual report and accounts, shares in the company were suspended from trading.
As a consequence, it is currently the subject of an ongoing investigation by consultants Forensic Risk Alliance and law firm Macfarlanes.
The firm has since appointed turnaround specialist Bob Holt as its CEO. He replaces Adam Minto, who resigned in the wake of the recent debacle.
It is the latest in a series of misfortunes to blight the investment trust, which recorded a 10% NAV drop in the three months to the end of September.
Since Friday, when the sell-off was announced, shares in Chrysalis have fallen 4% to 69p. Year to date, shares in the trust are down 72% from nearly £2.50.
Chrysalis’ holding in Revolution was held at nil value in its quarterly results to 30 September, contributing to the near 10% drop in NAV across the quarter.
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