REG - Jade Road Investmnts - Revision to Investment Management Agreement

Jade Road InvestmentsAnnouncement

27/03/2023 07:00

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RNS Number : 2318U  Jade Road Investments Limited  27 March 2023

27 March 2023

JADE ROAD INVESTMENTS LIMITED

("Jade Road Investments", "JADE", the "Company" or the "Group")

 

Revision to Investment Management Agreement

 

Jade Road Investments Limited (AIM: JADE), the London quoted company focused
on seeking the best risk-adjusted returns globally provides the following
update regarding amendments to the services agreement between the Company and
Harmony Capital Investors Limited ("HCIL"), its Investment Manager, dated 5
May 2017 (the "Services Agreement").  Pursuant to an agreement amending the
Services Agreement to be entered into between the Company and HCIL:

 

1)    HCIL will, subject to the overall supervision and control of the
Board, advise the Board and the Company on the orderly disposal of those
assets and investments currently owned by it (the "Legacy Portfolio") and
advise on any proposed new investments to be made in accordance with the new
Investment Policy recently approved by shareholders. HCIL shall, subject to
the overall supervision and control of the Board, also undertake general
administrative, investor relations, marketing, portfolio management and risk
management functions for the Company.

2)    In place of the original fee arrangements whereby HCIL received an
annual management fee of 1.75% of Net Asset Value and an annual incentive fee
of 20 % of any year on year increase in audited Net Asset Value subject to a
high water mark and performance hurdle it  will now be paid a fixed fee of
US350,000 for its services in connection with the orderly disposal and
management of the Legacy Portfolio and supporting the Company in its
operations. This represents a substantial reduction in fees as compared to the
previous agreement. Additionally, upon the realisation of any assets comprised
in the Legacy Portfolio, HCIL will also be entitled to an incentive fee of
20%]calculated as a percentageof the net proceeds received by the Company
therefrom, such fee only being payable once aggregate net proceeds from all
such disposals exceed an agreed hurdle.

3)    HCIL's appointment under these revised terms is for a fixed term of
one year, capable of extension by mutual agreement between HCIL and the
Company.

 

John Croft, the Company's Executive Chairman, commented:

"In line with the recent change to our Investment Policy and refocus of the
Company, we remain committed to the orderly disposal of our Legacy Portfolio.
The revised Services Agreement with HCIL has been negotiated to provide a
better alignment with the Company's current objectives.

This agreement reflects the importance that the Board places on achieving
exits from its China and other Asia based investments so that surplus cash can
be deployed into its revised investment strategy.

Future investments will be made in asset backed income generating investments
and your Board hopes to be able to make further announcements on this in the
near future. "

 

 

FOR FURTHER INFORMATION, PLEASE CONTACT:

 Jade Road Investments Limited                      +44 (0) 778 531 5588
 John Croft

 WH Ireland Limited - Nominated Adviser             +44 (0) 20 7220 1666
 James Joyce
 Andrew de Andrade

 Hybridan LLP - Corporate Broker                    +44 (0) 203 764 2341
 Claire Noyce

 Lionsgate Communications - Communications Adviser  +44 (0) 779 189 2509
 Jonathan Charles

 

This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended. Upon the
publication of this announcement via a Regulatory Information Service, this
inside information is now considered to be in the public domain.

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