HGV Extends the Term of Parallax Ventures as Asset Manager

Hygrovest Limited (ASX: HGV) ("HGV" or the “Company”) is an Australian-listed specialist investment company, which concentrates on producing capital growth for shareholders over the medium term from investments in listed and unlisted equities and other financial assets.

Extension of HGV Investment Management Agreement with Parallax

HGV is pleased to advise that it has agreed to an investment management agreement with Parallax Ventures (“Parallax”), with an initial term to 30 June 2023 (which may be extended by a further 2 years at HGV’s option) (“IMA”). The IMA is effectively on the same terms as the previous investment management agreement, entered into with Parallax in 2019.

Parallax was appointed as asset manager of HGV’s investment portfolio in July 2019, for an initial period of three years. During this term, the returns1 have exceeded HGV’s benchmark.

The HGV Board believes that entering into the IMA is important during the transition of the portfolio from its current concentration in cannabis businesses to a broader range of investment opportunities in sectors such as healthcare, the digital economy and natural resources.

Pursuant to the IMA, the bulk of Parallax’s remuneration will continue to be linked to material increases in HGV’s share price and/or net asset value and if achieved, paid through the issue of new Performance Rights to Parallax.

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