27 Aug 2013 07:00
27 August 2013
Concha plc("Concha" or the "Company")
Update re Moshen Limited Investment
Concha, the AIM listed company investing in media, communications and technology companies, provides the following update.
Concha has uncovered apparent financial irregularities which indicate a significant working capital shortfall within one of its investee companies, Moshen Limited.
Concha has been made aware of a significant creditor claim resulting from a material contract which was not disclosed as part of the due diligence exercise performed prior to its investment. The Company is working with its advisers to obtain an accurate assessment of liabilities and the possible impact on the Company's investment in equity and loans to Moshen and will keep shareholders updated as appropriate. The Chief Executive of Moshen has been suspended pending the outcome of the investigation. Concha has provided approximately £867,000 funding in total to Moshen, comprising approximately £400,000 as equity, and approximately £467,000 as secured term loan.
Moshen is one of a number of independent businesses in which Concha has invested since becoming an investing company in 2012. The irregularity pertains to a contract unconnected with Moshen's core trading activities and relates solely to that company. Consequently, Concha's other investments and its ability to continue as an investing company will remain unaffected.
Enquiries:
Concha plc chris.akers@srgplc.com
Chris Akers, Executive Chairman
Strand Hanson Limited (Nominated Adviser and Joint Broker) 020 7409 3494
James Harris
Andrew Emmott
Ritchie Balmer
PeterHouse Corporate Finance (Joint Broker) 020 7926 0935
Jon Levinson
Lucy Williams