Last checked at 15 Oct 2020 07:00
FOR IMMEDIATE RELEASE 15 October 2020
Manx Financial Group PLC
(the "Company")
Manx Financial Group PLC raises £2 million additional regulatory capital
The Company's Independent Directors (being all the Directors with the exception of James Mellon, Dr Greg Bailey and Denham Eke), have carefully considered the most suitable method of further augmenting the regulatory capital available to its subsidiary company Conister Bank Limited ("Conister"), both to continue the excellent growth in lending opportunities, and also to take advantage of potential further acquisition. As Conister enjoys increasingly high levels of liquidity from customers' deposits, this liquidity must be underpinned by its own separate regulatory capital on the basis of a ratio as directed under the Isle of Man banking licence.
As a result, and having considered other methods of raising capital, the Independent Directors have resolved, following negotiation, to accept on arms-length and standard commercial terms, two loans of £1.0 million each. Each loan is for five years, with a coupon of 6.0% per annum, is repayable at any time and has no conversion rights. One loan is from Burnbrae Limited ("Burnbrae"), 100% beneficially owned by Jim Mellon and of which Denham Eke is a director, and the other is from Culminant Reinsurance Ltd ("Culminant"), 100% beneficially owned by Dr Greg Bailey. Following this, the unaudited prudential ratio of Conister will be 18.9% which compares very favourably with other banking institutions.
Due to James Mellon being the 100% beneficial owner and both he and Denham Eke being directors of Burnbrae and Dr Greg Bailey being the 100% beneficial owner and director of Culminant, the two loans are Related Party Transactions under the AIM Rules. Accordingly, the Independent Directors consider, after consulting the Group's Nominated Adviser, that the terms of the loans are fair and reasonable insofar as the Group's shareholders are concerned.
This announcement contains inside information for the purposes of Article 7 of EU Regulation No. 596/2014 on market abuse. Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.
For further information, please contact:
Manx Financial Group PLC Denham Eke, Chief Executive Tel +44 (0)1624 694694
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