REG - Conygar Investmnt Co - Related Party Transactions

Conygar Investment CoAnnouncement

22/01/2024 07:00

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RNS Number : 3702A  Conygar Investment Company PLC(The)  22 January 2024

 

The Conygar Investment Company PLC

("Conygar", the "Company" or the "Group")

 

Related Party Transactions

 

As set out in the full year results on 21 November 2023, the Company, by way
of its wholly owned subsidiary, Conygar Nottingham Limited is party to a
services agreement (the "Agreement") with Larodde Limited ("Larodde"), in
respect of The Island Quarter, Nottingham. The Company has agreed to extend
the longstop date for assessing any potential fees payable to Larodde under
the Agreement from 31 December 2023 to 30 June 2025.  Larodde originally
provided services to enable the acquisition of The Island Quarter and
continues to provide additional services to further progress this development
project. Larodde is wholly owned by Mr Miller-Cheevers, who is a director of
the Company's subsidiary, Conygar Bristol Limited and therefore Larodde is a
related party of the Company pursuant to the AIM Rules for Companies.

 

Under the terms of the Agreement, Larodde is entitled to 10% of any surplus
that either (i) an independent valuation of The Island Quarter as at 30 June
2025; or (ii) the net proceeds, if The Island Quarter is sold before that
date, achieves over the total net costs of the project since acquisition,
including a 7% priority return to Conygar. As set out in the 2023 Conygar
Annual Report no amount was payable to Larodde under this Agreement as at 30
September 2023.

 

Furthermore, as notified in the announcement on 19 December 2023, Lavignac
Securities Limited ("Lavignac") also receives fees from the Group to further
progress both The Island Quarter Development in Nottingham and the proposed
development of the land at St Philips Marsh, Bristol.  Lavignac is also
wholly owned by Mr Miller-Cheevers and therefore a related party of the
Company pursuant to the AIM Rules for Companies.  With effect from January
2024, the monthly fee payable to Lavignac has reduced from £16,667 to
£15,000.

 

The extension of the Agreement and also the fees payable to Lavignac
constitute related party transactions pursuant to AIM Rule 13. The Directors
of Conygar consider, having consulted with Liberum, the Company's Nominated
Adviser, that the terms of the transactions are fair and reasonable insofar as
its shareholders are concerned.

 

 

Enquiries:

 

The Conygar Investment Company PLC

 

Robert Ware: 0207 258 8670

David Baldwin: 0207 258 8670

 

Liberum Capital Limited (Nominated Adviser and broker)

 

Richard Lindley: 0203 100 2222

Jamie Richards: 0203 100 2222

 

Temple Bar Advisory (public relations)

 

Alex Child-Villiers: 07795 425580

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