REG - DCI Advisors Ltd - Update on legal actions

DCI AdvisorsAnnouncement

13/12/2023 09:00

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RNS Number : 6335W  DCI Advisors Limited  13 December 2023

DCI Advisors Limited

(the "Company")

 

 

Update on legal actions with Dolphin Capital Partners Limited ("DCP")

 

13 December 2023

 

The Board of DCI Advisors Ltd ("DCI" or the "Company") provides the following
 update  on all current legal disputes between the Company and its former
Investment Manager, DCP, and DCP's close business partners. The background for
these legal disputes is that the Company terminated the Investment Management
Agreement dated 1 December 2021 (the "IMA") between the Company and DCP on 20
March 2023 on the basis of a repudiatory breach of contract by DCP for failing
to disclose a share option contract in relation to the sale of the Amanzoe
resort in 2018 (the "Undisclosed Share Option Agreement").

 

1.    The most recent development is the filing of criminal charges in
Greece by DCI against Miltos Kambourides, Michael Tsirikos, and some members
of staff of DCP and DCP's close business partner Zoniro SA in Greece. These
criminal charges were filed on 12 December 2023, and involve allegations of
money laundering, and the abuse of corporate governance. In total 9 individual
cases were filed as part of these criminal charges.

 

2.    In August 2023, DCP's close business partner Zoniro Ltd issued a
statutory demand claiming that certain sums were payable to it by DCI and
another DCI group company. As background, Zoniro SA (until 2015 part of DCI)
used to be DCI's project development manager for its Greek assets until the
termination of the agreements with Zoniro by DCI for suspected misconduct. DCI
has issued proceedings in the Commercial Court in the BVI to formally set
aside the two statutory demands, and has explained in its court filings the
close relationship between DCP and Zoniro and evidence of collusion between
the two to cause harm to DCI. Zoniro has not responded to DCI's proceedings,
and is now out of time to do so, suggesting that it has no answer to the
allegations set out in DCI's evidence. A hearing is scheduled to be held in
the BVI Court in February 2024 when the matter will be determined. Until that
time, we do not expect any material developments in those proceedings.
 Zoniro also started legal proceedings against one of DCI's subsidiaries in
Greece, and the Greek affiliate is defending the case vigorously.

 

3.    In early April 2023, DCP filed a claim in the High Court of Justice
of England and Wales against DCI alleging a repudiatory breach of contract by
the Company in relation to the termination of the IMA (the "Commercial Claim")
and claiming for unpaid fees. The Company considers the Commercial Claim to be
opportunistic, and without merit and is defending it vigorously. The Company
filed its defence and counterclaim in June 2023, and it has also applied to
accelerate the matter by filing a reverse summary judgment / strike out
application to summarily determine the principal points of each party's claims
and counterclaims. The reverse summary judgment hearing is scheduled to be
held in March 2024.

As the above actions show, the Company will pursue all legal options to defend
itself and recover the value arising from the Undisclosed Share Option
Agreement and damages from other cases. The directors continue to believe that
the value of the Undisclosed Share Option Agreement could be material in the
context of the size of the Company, but at this time they are not in a
position to be able to put a precise quantum on the Undisclosed Share Option.
No accrual has therefore been made in the Company's financial accounts
although the costs of all legal actions are accrued as they are incurred.

 

Enquiries

 DCI Advisors Ltd

 Nicolai Huls / Nick Paris, Managing Directors                                nickparis@btinternet.com (mailto:nickparis@btinternet.com)

                                                                              +44 (0) 7738 470550
 Cavendish Capital Markets (Nominated Adviser & Broker)

 William Marle / Jonny Franklin-Adams / Edward Whiley / (Corporate Finance)

 Pauline Tribe (Sales)                                                        +44 (0) 20 7220 0500
 FIM Capital Limited (Administrator)                                          llennon@fim.co.im (mailto:llennon@fim.co.im) / gdevlin@fim.co.im

                                                                            (mailto:gdevlin@fim.co.im)
 Lesley Lennon / Grainne Devlin (Corporate Governance)

 

 

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