Ceiba Investme. Regulatory News (CBA)

3 April 2020

CEIBA INVESTMENTS LIMITED

(the "Company")

(TICKER CBA, ISIN: GG00BFMDJH11)

Legal Entity Identifier: 213800XGY151JV5B1E88

COVID-19 Trading Update

The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

In the light of the rapidly evolving situation resulting from the spread of COVID-19 and its development into a global pandemic, CEIBA Investments Limited ("CEIBA" or the "Company"), the largest listed foreign company solely dedicated to investing in Cuba, with interests in the commercial and tourism real estate sectors of Cuba, today provides an update on current trading, operations and investments.

Cuba

Although Cuba is not escaping the impact of the COVID-19 pandemic (with some 170 plus confirmed cases and 4 deaths as at 1 April 2020), so far it is playing a remarkably positive role in the global health crisis. On 18 March 2020, Cuba allowed the British cruise ship, the MS Braemar, with at least five confirmed cases of coronavirus on board and 52 other passengers with symptoms, to dock at the Cuban port of Mariel and allow its 600, mainly British, passengers to board flights to the United Kingdom the same day. In addition, Cuba has sent hundreds of doctors to Italy, Brazil, Jamaica, Belize and other hard-hit countries, and the Cuban drug known as "Recombinant Human Interferon Alpha 2B" seems so far to be one of the more effective weapons against the COVID-19 virus. On 20 March 2020, Cuba announced a set of measures aimed at controlling the spread of COVID-19 within its national territory, which included border restrictions, and stopping the entry of tourists.

Current Trading, Operations and Investments

The Company can report that in the first two months of the current financial year there was no material COVID-19 impact on its operations, trading and investments. However, as of March 2020 hotel reservations for the year started to be affected by cancellations and decreasing flights to the Cuba, and the construction of the 400 room hotel in Trinidad, Cuba, experienced delays resulting from reduced construction imports from Europe.

Monte Barreto (as at 30 June 2019 held at US$71,736,000)

The operations of Inmobiliaria Monte Barreto S.A. ("Monte Barreto"), the owner and operator of the Miramar Trade Centre office complex in which the Company has a 49% interest, do not appear to be materially impacted. Only a limited number of tenants of Monte Barreto are airlines, travel agencies and other tourism related companies that have suffered an instant loss of income. Monte Barreto also has no debt financing and a cash balance in excess of US$10 million which would allow Monte Barreto to operate without income for an extended period of time if it were to become necessary. However, the general liquidity situation in Cuba may have a negative effect on the ability of Monte Barreto to distribute dividends to its shareholders, including CEIBA.

Hotel Investments in Havana and Varadero (as at 30 June 2019 held at US$75,107,499)

As a direct result of the measures announced by the Cuban government on 20 March 2020, Miramar S.A. ("Miramar"), the Cuban joint venture company in which CEIBA has a 32.5% interest, which owns and operates one hotel in Havana and three hotels in Varadero, Cuba's principal beach resort destination, is temporarily closing its hotels and substantially decreasing its workforce. Miramar has no debt financing and a healthy cash balance in excess of US$40 million which allows Miramar to operate without income for an extended period of time. However, the closing of the hotels will clearly have a negative effect on the results of Miramar and its ability to distribute dividends to its shareholders, including CEIBA.

Hotel Investment in Trinidad, Cuba (as at 30 June 2019 held at US$15,770,372)

In March 2020, the Italian-Cuban partnership that is constructing the 400-room beachfront hotel in Trinidad, Cuba, informed TosCuba S.A. ("TosCuba"), the Cuban joint venture company in which the Company has a 40% interest that the construction will be affected by the COVID-19 pandemic and will suffer delays. In parallel, CEIBA is presently in discussions with TosCuba to substantially lower the capital expenditure on the construction until there is greater certainty around the repatriation of dividends from Miramar and Monte Barreto that allow for the future financing and construction of the new hotel. This will inevitably extend the time-line and disbursement schedule of the construction and to set a new completion date of the turn-key construction contract. Further information will be provided when there is greater clarity on the development.

FINTUR Facility (as at 31 March 2020 the Company is owed €1,716,667)

As at 1 April 2020, the Company is owed €1,716,667 in a finance facility secured by offshore income from hotels in Cuba. Payment of the outstanding amount is scheduled to take place in three monthly installments ending on 30 June 2021, but this schedule will now likely be re-negotiated and the final payment date extended.

Liquidity

As at the date of this announcement, the balance sheet of the Company itself is strong and remains debt free and the operational Cuban joint venture companies in which it holds interests are well positioned to navigate the COVID-19 pandemic. The cash position of the Company at holding level as at 31 March 2020 was in excess of US$9 million.

However, the expected decrease in dividend income from the Cuban joint venture companies Miramar and Monte Barreto, in combination with the ongoing finance and investment requirements of TosCuba to construct the Trinidad hotel, have made it necessary to take several actions in order to safeguard the financial resources of the Company and ensure its future.

Board Actions Taken

The current main concern beyond employee welfare and safety is the impact of the COVID-19 pandemic on the Company. To mitigate the effects of the pandemic and continue to carry out its investment plans the Board has, amongst others, made the following decisions:

Ø to support the decision of Miramar to close its hotels in Havana and Varadero and substantially reduce its workforce;

Ø to support the decision of TosCuba to substantially lower capital expenditure on the construction and agree on a revised time-line and disbursement schedule at a time that there is greater certainty around the economic and financial viability of the hotel development;

Ø to discuss and agree with Casa Financiera FINTUR S.A. a new payment schedule for the €24 million and €12 million tranches (A and B) in which it originally had an aggregate €6 million participation with a present residual exposure of €1,716,667;

Ø to restrict discretionary spending and non-committed capital expenditure in Miramar and Monte Barreto;

Ø to carry out a detailed review of the costs and expenditures of the Company and its subsidiaries with a view to limit spending;

Ø to enter into discussions with third parties and shareholders in order to obtain a credit facility of up to €15 million.

Dividends

In addition to the decisions outlined above, the Board has decided that in light of the COVID-19 pandemic and the investment requirements of the Company, it is necessary to change the Company's dividend policy and not to declare a year-end dividend in respect of the 2019 financial year. The Board hopes to re-consider CEIBA's dividend policy for the year ending 31 December 2020, however this will depend on the length and severity of business disruption and the outlook for the remainder of the year. The Board will inform shareholders on their decision on whether to distribute a dividend in 2021 at the time of the announcement of the 2020 year-end results.

Outlook

Given the unprecedented levels of uncertainty at this time and the lack of clarity on the duration of business interruption, all previous guidance on the Company's future performance is being withdrawn. An update will be provided once there is greater certainty on the trading environment and the impact of COVID-19 on the Company and its operations and investments in Cuba. The Board remains confident in the long-term strong business fundamentals of the Company.

Financial Statements

The Company expects to issue its results for the year ended 31 December 2019 towards the end of April 2020 and not to seek temporary relief as offered by the Financial Conduct Authority on 26 March 2020 and to hold its Annual General Meeting as planned on 19 June 2020.

For further information, please contact:

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