Black Sea Property Fund Limited Re Agreement (5362D)
January 29 2015 - 10:43AM
UK Regulatory
TIDMBKSA
RNS Number : 5362D
Black Sea Property Fund Limited
29 January 2015
The Black Sea Property Fund Limited
("Black Sea" or the "Company")
Loan Agreement
On 12 December 2014, the Board of Black Sea announced proposals
to recommence investment activities in the residential real estate,
holiday homes, commercial real estate and distressed real estate
markets of Bulgaria and that it would shortly write to shareholders
to seek approval to adopt a new investing policy, extend the life
of the Company and raise funds as soon as practically possible to
invest the Company's resources in the Bulgarian real estate market,
subject to the approval of the Jersey Financial Services
Commission.
In order to fund the current running costs of the Company, the
Board of Black Sea announces that it has today entered into a loan
agreement ("Loan Agreement") with Mamferay Holdings Limited
("Mamferay") whereby Mamferay will provide the Company with an
unsecured loan of up to GBP350,000 (the "Loan"). GBP100,000 of the
Loan is to be drawn down by the Company immediately, and the
remaining GBP250,000 may be drawn down once the Company has
received approval from the Jersey Financial Services Commission to
extend the life of the Company. In the event that the Jersey
Financial Services Commission does not approve the extension of the
life of the Company or the Company is unable to raise sufficient
funds to cover its working capital requirements, the Loan shall be
free of interest and shall be used to fund the costs of winding up
the Company, with any surplus being repayable to the lender (who
will have no claim against the Company in respect of the balance).
Subject to the above, the Loan will bear an interest rate of 3
months' Euribor plus two point five per cent per annum over the
utilised portion of the loan, payable at the end of the term of the
Loan. The Loan will be repayable on the earlier of a) one year
after today's date or b) the date on which the Board determines
that the Company has raised sufficient funds for its investment
strategy.
The Company also has the option to convert the Loan and any
accrued interest into shares in the Company at a price per share to
be determined by reference to the volume weighted average price for
the shares on the five immediately preceding days (such days to be
selected by the Board in good faith as close as conveniently
possible to the conversion date) on which trading took place on the
AIM market of the London Stock Exchange, provided such a conversion
would not result in additional financial expenses or further
statutory obligations for Mamferay, including but not limited to an
obligation for Mamferay to make an offer pursuant to the City Code
on Takeovers and Mergers.
As Mamferay is a substantial shareholder in the Company, the
Loan Agreement is deemed to be a related party transaction under
the AIM Rules. The Board, having consulted with the Company's
nominated adviser, Cairn Financial Advisers LLP, considers that the
terms of the Loan Agreement are fair and reasonable insofar as
shareholders are concerned.
For further information please contact:
The Black Sea Property Fund Limited
Alex Borrelli, Chairman Tel: +44 7747 020600
Cairn Financial Advisers LLP Tel: +44 20 7148 7900
Nominated Adviser
Sandy Jamieson
Peterhouse Corporate Finance Limited Tel: + 44 20 7469 0930
Sole broker
Charles Goodfellow, Heena Karani
This information is provided by RNS
The company news service from the London Stock Exchange
END
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