REG - Dolphin Capital Inv - Shareholder Update

DCI AdvisorsAnnouncement

18/04/2023 10:45

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RNS Number : 5933W  Dolphin Capital Investors Limited  18 April 2023

This announcement has been determined to contain inside information for the
purposes of the UK version of the market abuse regulation (EU) No.596/2014.

Dolphin Capital Investors Limited

(the "Company" or "DCI")

Shareholder Update

 

18 April 2023

 

Further to the RNS announcement made on 20 March 2023 that the Investment
Management Agreement dated 1 December 2021 (the "IMA") between the Company and
its Investment Manager ("Dolphin Capital Partners") had been terminated
immediately for a repudiatory breach of its obligations to the Company, the
Board of the Company wishes to issue an update on progress since then.

 

The Company continues to believe that the Option Agreement under which Dolphin
Capital Partners acquired the right to buy an additional 15% of the share
capital of the special purpose vehicle holding the Amanzoe resort that the
Company sold in August 2018 was undisclosed and therefore unauthorised by the
Company. Accordingly, DCI is seeking to recover the value arising from the
Option Agreement from Dolphin Capital Partners. It is currently not clear how
material this payment could be.

 

As announced on 11 April 2023, Dolphin Capital Partners filed a claim against
the Company in the English High Court on 6 April 2023 alleging repudiatory
breach of the IMA. The Company still believes this claim to be opportunistic
and without merit and the Company has now notified Dolphin Capital Partners
that it will be filing a counter claim.

 

Dolphin Capital Holdings, an entity which is associated with Miltos
Kambourides the Managing Partner of Dolphin Capital Partners, sold its entire
holding of 9.73% in the Company on 6 April 2023 and these shares were bought
by some existing Shareholders of the Company as well as one new investor. The
Board is pleased by this show of support for their recent actions and the
prospects for the Company. Indeed, the Board has received considerable support
and encouragement from Shareholders for their recent actions.

 

Nicolai Huls and Nick Paris who are the two new Managing Directors of the
Company are working to stabilise and improve the operations of DCI and have
contacted all of its business partners and service providers. Each has
reaffirmed their willingness to continue to work with the Company. Operations
therefore continue as normal throughout the Company and its portfolio of
assets. The Board is confident that it can continue to manage the Company
through this short period of transition.

 

Further finance is being arranged both for the Company's working capital
purposes and the continued construction of the golf course and golf clubhouse
in phase 1 of the Kilada Hills project in Porto Heli, Greece via loans from
certain Shareholders and investors. Further details of these will be announced
once the loans are agreed and committed. In addition, the Company expects to
be able to apply soon to draw down the first 25% tranche of the Euros 6
million Greek government grant that was awarded to the Kilada project in 2022.
 

 

Asset sale efforts are continuing as planned by the Board of the Company prior
to the termination of Dolphin Capital Partners. Updates will be issued once
any of these reach the stage of a binding commitment from a buyer.

 

The Board of the Company remains committed to the objectives that were
approved by Shareholders at the Company's Extraordinary General Meeting held
on 22 December 2021. There are no plans to bring additional assets into the
Company.

 

Terms not otherwise defined within this announcement shall have the same
meaning as defined in the announcements made on 20 March 2023 and 11 April,
respectively.

 

Enquiries

 Dolphin Capital Investors

 Nicolai Huls / Nick Paris, Managing Directors                            nickparis@btinternet.com

                                                                          +44 (0) 7738 470550
 finnCap (Nominated Adviser & Broker)

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

                                                                        +44 (0) 20 7220 0500
 Mark Whitfeld / Pauline Tribe (Sales)
 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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