REG-Clear Leisure Plc: Business Update

Quantum Blockchain TechnologiesAnnouncement

17/08/2020 07:05

17 August 2020

Clear Leisure Plc
(“Clear Leisure” or “the Company”)

Business Update

The board of Clear Leisure (AIM: CLP) is pleased to give shareholders a
business update on its investment portfolio, new initiatives and the ongoing
claims relating to its historical assets.

Sipiem SpA (“Sipiem”)

The second court hearing in respect of the legal action against the former
directors of Sipiem,  scheduled for 6 May 2020 in the Venice Court, has been
postponed to 30 September 2020, due to delays in the court system brought
about by Covid-19. The Company’s lawyers have filed additional documentary
evidence to support the claim on 29 June 2020.

As previously reported, legal representatives of all parties involved in the
€10.8m claim, as referred to in the RNS of 10 September 2019, will by
present when the court case is convened next month, including legal
representatives of the two insurance companies, (which are among the largest
operating in Europe) and which provided the professional indemnity cover to
the majority of the eight defendants, as reported in the RNS of 10 February
2020.

The Company remains confident on the strong foundations of the claim.

Forcrowd srl (“Forcrowd”)

On 18 July 2020, Forcrowd, in which Clear Leisure has a 20% interest and is
one of Italy’s newest crowdfunding platforms, launched its second
crowdfunding campaign, for an Italian technology company, Meta Wellness Srl.

Meta Wellness has developed a proprietary communications “wearable”
bracelet for sport and wellness. During the early days of the Covid-19
pandemic, Meta Wellness began converting its existing wearable bracelet into a
distancing monitor bracelet and has begun to sign a number of contracts with
companies within Italy and across the world.

Meta Wellness has a current capital raising target of up to €1.5m, with the
campaign closing on 31 October 2020. Clear Leisure will be paid 1 per cent. of
any funds raised by Meta Wellness on Forcrowd as part of the existing
shareholder agreement with Forcrowd.

The Company has identified a number of innovative technology start-ups as
potential candidates for new campaigns to be launched on Forcrowd’s platform
in the Autumn. With regards to the companies which applied to launch a capital
raise on the platform, and which the Company referred to in its announcement
dated 28 January 2020, only B4TECH was approved by Forcrowd’s Scientific
Committee and board of directors and has, to date, raised €50,000 out of its
target of €250,000. The B4TECH fundraise will close on 23 August 2020 and it
will be up to the Company and the investors to decide, at the end of the
campaign, whether to close at a potentially lower amount, or to extend the
deadline or cancel the campaign.

PBV Monitor srl (“PBV”)

PBV, in which Clear Leisure has a 10% interest, having secured (as per RNS of
28 January) additional funding, intends to launch its new Intelligence Search
online service in September 2020, while continuing its editorial and seminars
activity.

Bitcoin Mining

The Company continues to monitor trends in the cryptocurrency market, while
waiting for the right time to relocate the data mining facility from Serbia
and resume profitable cryptocurrency extraction. As the Bitcoin price has
recovered this year to nearly $12,000, arrangements are being put in place to
transfer the data mining “container” to Italy. Previous plans in March for
a similar move were delayed due to the restrictions brought about by Covid-19.

New Technology Investment Initiative

Clear Leisure is in the early stages of launching a new investment initiative
focused on high growth technology companies. The Company has engaged Sapphire
Capital Partners LLP, (https://www.sapphirecapitalpartners.co.uk/) a London
and Belfast-based FCA approved and regulated investment management
partnership, to act as the Investment Manager to establish and manage an EIS
fund aimed at professional and qualifying retail investors. Sapphire currently
manages 33 funds with approximately £60 million under management.

The proposed fund will seek to invest in companies which focus on the
integration of biological and digital systems.

Clear Leisure will scout, source, analyse and perform due diligence on
innovative startups within this industry and mainly in the UK, while the final
investment decision will be approved by Sapphire Capital. The target
fundraising for the fund is £10m, with an initial round of £3m. No dilution
will take place of shareholders in Clear Leisure.

Once the Fund Information Memorandum is finalised and FCA approval granted,
which could take several months, potential investors will be approached to
commence fund raising.

At this stage there is no certainty that the fund will be granted FCA approval
or that it will be successful in reaching its target fundraising. 

Mediapolis SA (“Mediapolis”)

The Company has now received €1,480,932, being the first tranche (89%) of
the court approved settlement.

In respect of the administrative claim filed against the Piedmont Region in
February 2015 by Mediapolis’ previous management team, for the amount of
€39.65m, the Receiver of Mediapolis has continued to pursue the case through
the Italian courts. The Company has been informed that the claim has now
reached the final stages of court trials (which commenced in February 2020),
with the latest hearing being held on 6 July 2020. The ruling is expected
within 60 days of this date.

The Company is no longer involved in any court proceedings which involve
Mediapolis following the final settlement with the Receiver of Mediapolis and
has therefore little knowledge as to the likely success or failure of the
ongoing action against Piedmont Region. The Company understands, however, that
83% of any proceeds from this case in excess of €3m (this being the amount
owed to existing creditors), would be payable to the Company as a shareholder
of Mediapolis.

Geosim

The Israeli portfolio company has delivered on its project in Asia to build a
Digital Twin model of an international airport, despite the inevitable delays
due to Covid-19.

The Milan and London Digital Twin projects, as announced on 16 December 2019,
are currently on hold, waiting for general market conditions to return to more
normal levels. These delays are necessary in order to avoid the risk of
interrupting data acquisition which could be a possibility should further
lock-down restrictions be reestablished. There is also currently limited
mobility of the staff needed onsite.

Eufingest loans

Following receipt of the Mediapolis funds referred to above, €550,000 plus
interest of €11,157, has been repaid to Eufingest.

Delay to the notification of Interim Results for the six months ended 30 June
2020

The Company also wishes to notify shareholders that pursuant to the guidance
published by the London Stock Exchange in respect of the temporary measures
for the publication of half-yearly reports for AIM companies pursuant to AIM
Rule 18 of the AIM Rules for Companies, Clear Leisure intends to utilise the
additional one month period to prepare and notify shareholders of the
Company’s interim results for the six months ended 30 June 2020. As such the
Company will release its Interim Results no later than 30 October 2020.

Francesco Gardin, Executive Chairman and CEO of Clear Leisure, commented,
“We are particularly excited with the new technology investment initiative,
which we hope will receive all the necessary approvals and be able to start
raising funds within the next six months. We will be investing in only the
most innovative companies in the new frontier area of the merger of biological
and digital systems. This new frontier industry has been the focus of
extensive research work carried out between myself and a former colleague at
the Milan University during the last two years, under a formal cooperation
agreement with the Medical School of the same university.”

“Finally, we have specifically chosen to make these proposed investments via
a stand-alone investment vehicle, rather than to raise funds directly through
Clear Leisure, in order to limit the dilution of our shareholder base.”

This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014.

For further information please contact:

Clear Leisure
Plc                                                                                 
+39 335 296573
Francesco Gardin, CEO and Executive Chairman

SP Angel Corporate Finance (Nominated Adviser & Broker)      +44 (0)20
3470 0470
Jeff Keating
                                                                                                                     
 

Leander (Financial
PR)                                                                
+44 (0) 7795 168 157
Christian Taylor-Wilkinson

About Clear Leisure Plc

Clear Leisure plc (AIM: CLP) is an AIM listed investment company which has
recently realigned its strategic focus to technology related investments, with
special regard to interactive media, blockchain and AI sectors. The Company
also owns shareholdings in a number of historical investments primarily in the
Italian real estate companies, which it is currently seeking compensation
through court action.

For further information, please visit, www.clearleisure.co.uk



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