Last checked at 22 Jan 2024 07:00
The Conygar Investment Company PLC
("Conygar", the "Company" or the "Group")
Related Party Transactions
As set out in the full year results on 21 November 2023, the Company, by way of its wholly owned subsidiary, Conygar Nottingham Limited is party to a services agreement (the "Agreement") with Larodde Limited ("Larodde"), in respect of The Island Quarter, Nottingham. The Company has agreed to extend the longstop date for assessing any potential fees payable to Larodde under the Agreement from 31 December 2023 to 30 June 2025. Larodde originally provided services to enable the acquisition of The Island Quarter and continues to provide additional services to further progress this development project. Larodde is wholly owned by Mr Miller-Cheevers, who is a director of the Company's subsidiary, Conygar Bristol Limited and therefore Larodde is a related party of the Company pursuant to the AIM Rules for Companies.
Under the terms of the Agreement, Larodde is entitled to 10% of any surplus that either (i) an independent valuation of The Island Quarter as at 30 June 2025; or (ii) the net proceeds, if The Island Quarter is sold before that date, achieves over the total net costs of the project since acquisition, including a 7% priority return to Conygar. As set out in the 2023 Conygar Annual Report no amount was payable to Larodde under this Agreement as at 30 September 2023.
Furthermore, as notified in the announcement on 19 December 2023, Lavignac Securities Limited ("Lavignac") also receives fees from the Group to further progress both The Island Quarter Development in Nottingham and the proposed development of the land at St Philips Marsh, Bristol. Lavignac is also wholly owned by Mr Miller-Cheevers and therefore a related party of the Company pursuant to the AIM Rules for Companies. With effect from January 2024, the monthly fee payable to Lavignac has reduced from £16,667 to £15,000.
The extension of the Agreement and also the fees payable to Lavignac constitute related party transactions pursuant to AIM Rule 13. The Directors of Conygar consider, having consulted with Liberum, the Company's Nominated Adviser, that the terms of the transactions are fair and reasonable insofar as its shareholders are concerned.
Enquiries:
The Conygar Investment Company PLC
Robert Ware: 0207 258 8670
David Baldwin: 0207 258 8670
Liberum Capital Limited (Nominated Adviser and broker)
Richard Lindley: 0203 100 2222
Jamie Richards: 0203 100 2222
Temple Bar Advisory (public relations)
Alex Child-Villiers: 07795 425580