Minoan Regulatory News (MIN)

Minoan Group Plc

(the "Company" or the "Group" or "Minoan") 

Placing, Business Update and Grant of Options

Placing

Minoan Group Plc, the AIM listed travel and leisure company, is pleased to announce that it has placed, subject to admission to AIM, 16,250,000 new ordinary shares of 1 pence each in the Company ("Ordinary Shares") (the Placing Shares") at a price of 8 pence per share with institutional and other investors raising £1.3 million before expenses in order to facilitate the Group's planned expansion of its travel and leisure business, particularly in the cruise market, and to provide additional working capital.

The Directors of the Company have indicated that they would have liked to participate in the placing but were deemed to be in a Close Period by virtue of information held by them about the acquisitions being considered by the Company.

Business Update

Cretan Project (the "Project")

The Group's application for the Project to be recognised as a strategic investment and, as such, to qualify for inclusion in the Fast Track Process continues to pass through the relevant procedures in Invest in Greece. The Board remains confident that this approval will be received in the near future.

The participation agreement and investment announced on 20 June 2012 indicates a base value for the Project as at today of £20 million plus a potentially much greater value immediately after receipt of the approval of the EIA but prior to commencing development.

Travel and Leisure ("T&L")

The Group is now in position to take advantage of commercial opportunities as they arise and the directors have an immediate target to increase the total transaction value (i.e. gross sales) to £100 million per annum compared to the existing level of approximately £45 million per annum.

The acquisition strategy is based on the following parameters:

·; Established businesses - effectively "buying" customers;

·; Profitable and cash flow positive; and

·; Segment businesses - primarily non risk.

In addition to the various commercial agreements/ventures announced previously, including Cruise 118, the General Sales Agency Agreement with Sunwing Travel Group Inc., the Great UK Stays travel portal, Ski Travel Centre, heads of agreement have now been signed in respect of the following commercial transactions:

1. Installation of a virtual network providing travel products in branches of a major UK retail organisation with no acquisition cost.

2. Provision of travel products through a Groupon type relationship.

The Board continues to review other opportunities, particularly in the expanding cruise market, and further announcements are expected in the near future.

Christopher Egleton, Chairman of Minoan and Duncan Wilson, CEO, commented:

"We are delighted at the appointment of WH Ireland Limited as the Company's Nominated Adviser, as announced yesterday, and are greatly encouraged by the level of support for the placing and at the future prospects for both the Project and the T&L business".

Grant of Options

Under the terms of the placing, Minoan has also issued options to subscribe for up to 741,875 Ordinary Shares at a price of 8 pence per share. The Options will expire on 17 August 2015.

Admission

Application has been made for the 16,250,000 new Ordinary Shares to be admitted to trading on AIM ("Admission") and it is expected that Admission will take place at 8.00 a.m. on 23 August 2012. 

Following Admission, there will be a total of 145,923,865 Ordinary Shares in issue. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, Minoan under the FSA's Disclosure and Transparency Rules.

For further information visit www.minoangroup.comor contact: