27 Jun 2013 11:43
27 June 2013
Northacre PLC
("Northacre" or the "Company")
Consultancy Agreement
Northacre announces that it has entered into a consultancy agreement with ADCM Ltd (the "Agreement" and "ADCM") under which ADCM will provide a range of advice, analysis and management support services to the Company. ADCM will also seek to introduce the Company to its network of real estate finance and development professionals, investors, and actively seek to source new opportunities for the Company across local and wider markets.
Under the terms of the seven-year Agreement, which the Company may terminate at each anniversary date, the Company shall pay to ADCM an annual fee of £1.2 million and ADCM shall be entitled to receive a fee of 35% of profits earned by the Company as a result of engagements entered into during the term of the Agreement. Any profits arising in relation to the Company's The Lancasters development are specifically excluded from this fee arrangement.
Jassim Alseddiqi and Mustafa Kheriba, both directors of the Company, are deemed to be related parties of ADCM and the Company for the purposes of the AIM Rules for Companies ("AIM Rules"). In view of this, the entry into the Agreement comprises a related party transaction for the purposes of the AIM Rules. The Company's independent directors consider, having consulted with finnCap Ltd, the Company's nominated adviser, that the terms of the transaction being entered into are fair and reasonable insofar as the Company's shareholders are concerned.
Enquiries:
Northacre PLC Tel: 020 7349 8000
Klas Nilsson (Non-Executive Chairman)
finnCap Ltd Tel: 020 7220 0500
Stuart Andrews
Henrik Persson
Hudson Sandler Ltd Tel: 020 7796 4133
Michael Sandler