23 Apr 2010 07:00
23 April 2010
Brainspark plc
("Brainspark" or the "Company")
Investment in Indian Restaurants Group plc
Brainspark plc (AIM: BSP), a fast growing international investment company, is pleased to announce that the Company has entered into an agreement with Indian Restaurants Group plc ("IRG") to subscribe for 5,578,994 new ordinary shares in IRG, equivalent to 29.9 per cent of the enlarged issued share capital of IRG (the "Investment"). The total consideration for the Investment by Brainspark is £139,474.85, equivalent to 2.5 pence per new ordinary share in IRG, to be fully settled in cash.
Indian Restaurants Group (AIM: IRGP) is an AIM quoted investment company with a strategy to acquire and operate a chain of restaurants providing authentic, home style Indian food. IRG currently operates 3 Indian restaurants in the UK and recently opened a restaurant branded in Mela which is situated in Redhill, Surrey. The funds raised pursuant to the Investment will be used by IRG for working capital purposes. Haresh Kanabar is director of both IRG and Brainspark. Haresh Kanabar does not hold any shares in either IRG or Brainspark .
For the year to 30 September 2009 IRG generated revenues of GBP 2.47 million, with a loss before tax of GBP 0.68 million. Audited net assets of IRG as at 30 September 2009 were GBP 1.73 million.
It is the intention of IRG to invite Alfredo Villa, CEO of Brainspark, to join the Board of IRG as a Non Executive Director.
Prof. Francesco Gardin, Chairman of Brainspark, commented, "IRG is in line with our stated investment strategy in the leisure and entertainment industry. We view IRG as an excellent platform for growth in this sector. This new investment adds one more quoted company to our portfolio."
Alfredo Villa, CEO of Brainspark, commented: "We view a natural synergy between the restaurant business and the theme parks, where authentic home style Indian food will prove to be an appealing alternative to the standard fast food style offering, available nowdays in these sites. We envisage the growth of IRG starting from a strong existing business base, which is profitable at the individual restaurant level, and with scale should move towards overall profitability."
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For further information please contact:
| Brainspark plc | +39 335 296 573 |
| Francesco Gardin, Chairman |
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| Allenby Capital Limited | +44(0) 20 3328 5656 |
| Nick Athanas/James Reeve |
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| Leander PR | +44(0) 7795 168 157 |
| Christian Taylor-Wilkinson |
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Notes to Editors:
About Brainspark Plc
Brainspark plc (AIM: BSP) is an AIM listed investment company pursuing a dynamic strategy to create a comprehensive portfolio of companies encompassing the interactive media, leisure, entertainment and financial services sectors mainly in Italy but also other European countries. Its core investment is Mediapolis Investments SA, the owner of a site in northern Italy with plans for the development of a large theme park. The company may be either a passive or active investor and Brainspark's investment rationale ranges from acquiring minority positions with strategic influence through to larger controlling positions