Eight Capital Ptnrs. - 1AF2 Bond Update
22/07/2024 13:00
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RNS Number : 3244X Eight Capital Partners PLC 22 July 2024
22 July 2024
Eight Capital Partners plc
("ECP", "Eight Capital" or "the Company")
1AF2 Bond Update
Eight Capital Partners plc (AQSE: ECP), the financial services operating
company that aims to grow revenue through businesses engaged in "Fintech"
operations including in the digital banking and lending sectors, announces an
update to the repayments owed to the Company by 1AF2 Limited ("1AF2") relating
to the bonds purchased in 2021, with further information below.
In August 2021, as noted in the Final Accounts for the year ended 31 December
2023 announcement published on 2 July 2024, Eight Capital purchased EUR
40million 2.5% fixed rate secured bonds (the "Bonds") in 1AF2. The Bonds were
issued by 1AF2 Limited, a private company registered in England, which is a
wholly owned subsidiary of The Avantgarde Group S.p.A. ("TAG"), an Italian
private holding company invested in the fintech sector. TAG provided a
security package for the Bonds which is described in the Company's final
accounts for the year ended 31 December 2023. The Bonds are due for
repayment by 22 July 2024.
At the time of issue of the Company's annual accounts earlier this month, the
liquidation of the security package was not the issuer's intended method of
repayment of the bond. The issuer has again confirmed to ECP that it remains
their intention to fulfil all of their obligations from sources of capital
other than the security package.
The Company has received a proposal from 1AF2 and TAG to acquire the 1AF2 Bond
from ECP at par value with settlement in cash, public securities and private
assets. The negotiations are advancing and ECP is optimistic of completing
and executing a sale agreement in due course. TAG has proposed transferring
EUR 4m of assets to ECP as additional security while this process completes,
albeit this has not yet occurred.
The Company is exploring all its options to ensure the best outcome for its
shareholders. Should a sale not be finalised, the Company retains its rights
to implement a recovery process through the security package with further
recourse through the issuer's guarantor TAG.
The Company will keep the market apprised of developments.
The Directors of the Company accept responsibility for the content of this
announcement.
This announcement contains inside information for the purposes of the UK
Market Abuse Regulation and the Directors of the Company are responsible for
the release of this announcement.
For further information, please visit www.eight.capital or contact:
Eight Capital Partners plc info@eight.capital
Dominic White, Chairman
Luciano Maranzana, Group CEO
Cairn Financial Advisers LLP +44 20 7213 0880
AQSE Corporate Adviser
Jo Turner / Liam Murray
About Eight Capital Partners:
Eight Capital partners plc is a financial services operating company that aims
to grow revenue through businesses engaged in "Fintech" operations including
in the digital banking and lending sectors.
ECP seeks to grow its group revenue in these high growth fintech sub-sectors,
which it expects to also increase in value, such that they generate an
attractive rate of return for shareholders, predominantly through capital
appreciation.
www.eight.capital (http://www.eight.capital)
Eight Capital Partners operates two subsidiary businesses:
Epsion Capital:
Epsion Capital is an independent corporate advisory firm based in London with
an extensive experience in UK and European capital markets. The team of senior
and experienced ECM and M&A professionals is specialised across multiple
markets, sectors and geographies and it prides itself on a commercial approach
that allows the clients to achieve their growth ambitions.
www.epsioncapital.com (http://www.epsioncapital.com/)
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