Coral Products PLC Acquisition of Customised Packaging Limited (9347Q)
March 03 2021 - 2:00AM
UK Regulatory
TIDMCRU
RNS Number : 9347Q
Coral Products PLC
03 March 2021
Coral Products PLC
(the "Company", the "Group" or "Coral")
Acquisition of Customised Packaging Limited
Coral Products plc, a specialist in the design, manufacture and
supply of plastic products based in Wythenshawe, Manchester, is
pleased to announce that it has acquired the entire issued share
capital of Customised Packaging Limited ("CPL") for a net
consideration of GBP1.25 million ("Acquisition"), comprising
GBP883,956.25 to be satisfied in cash and GBP366,043.75 to be
satisfied by the issue of 3,327,669 new ordinary shares to the
vendors of CPL ("Vendors") at a price of 11 pence per share
("Consideration Shares").
The cash consideration for the Acquisition is being satisfied
from Group's existing resources.
In addition to the consideration of GBP1.25 million detailed
above, an earn-out consideration shall become payable to the
Vendors in the event that CPL's profit before tax for the year
ended 31 December 2021 ("2021 PBT") is greater than two hundred and
fifty thousand pounds ("Earn-Out Consideration"). If triggered, the
Earn-Out Consideration shall be equivalent to 30% of profits in
excess of two hundred and fifty thousand pounds for the period 1
January 2021 to 31 December 2021 (capped to GBP250,000) and shall
be payable by the date no more than 20 business days after the date
on which 2021 profit before taxation is agreed ("Due Date").
CPL designs, manufactures and supplies plastic products using
their top of the range sheet extrusion technology and vacuum
forming capability to a range of a blue-chip customer's own design
specifications. CPL, which is based in Manchester will continue to
operate from its existing premises.
As per the unaudited management accounts, in the year ended 31
December 2020, CPL's sales were circa GBP2.3 million and the net
asset value was GBP0.7 million. Pursuant to the terms of the share
purchase agreement, the Vendors have given warranties and
indemnities in favour of the Company.
Admission and Total Voting Rights
Application will be made to the London Stock Exchange to admit
the Consideration Shares to trading on AIM. Admission of the
Consideration Shares is expected to occur on or around 8 March 2021
("Admission"). The new ordinary shares will rank pari passu with
the existing ordinary shares.
In conformity with DTR 5.6.1, the Company notifies that, as at
the date of this announcement, it has a single class of shares in
issue being Ordinary Shares and the total number of Ordinary Shares
in issue is currently 82,614,865 .
There are no Ordinary Shares held in treasury. Each Ordinary
Share entitles the holder to a single vote at general meetings of
the Company. Following Admission, the enlarged issued share capital
of the Company will comprise 85,942,534 ordinary shares of 1 pence
each.
Joe Grimmond, Chairman of the Company, commented: "The
acquisition of CPL is a significant milestone for Coral as it
expands further the Group's market coverage and product range. The
Board anticipates that the Acquisition will be earnings enhancing
in its first year."
For more information on Coral and CPL, please visit the
following websites:
www.coralproducts.com
www.customisedpackaging.co.uk
This announcement contains inside information for the purposes
of UK Market Abuse Regulation and has been arranged for release by
Sharon Tinsley, Finance Director of the Company. The Directors of
the Company are responsible for the release of this
announcement.
For further information, please contact:
Coral Products plc
Joe Grimmond, Executive Chairman Tel: 07703 51
8148
Nominated Adviser & Broker
Cairn Financial Advisers LLP Tel: 020 7213
Liam Murray 0880
Sandy Jamieson
David Lawman (Corporate Broking)
Tel: 07515 587
Capital Markets Consultants Limited 184
Richard Pearson
This announcement contains unaudited information and
forward-looking statements that are based on current expectations
or beliefs, as well as assumptions about future events. These
forward-looking statements can be identified by the fact that they
do not relate only to historical or current facts and undue
reliance should not be placed on any such statement because they
speak only as at the date of this document and are subject to known
and unknown risks and uncertainties and can be affected by other
factors that could cause actual results, and Coral's plans and
objectives, to differ materially from those expressed or implied in
the forward-looking statements. Coral undertakes no obligation to
revise or update any forward-looking statement contained within
this announcement, regardless of whether those statements are
affected as a result of new information, future events or
otherwise, save as required by law and regulations.
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END
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