27 Jul 2015 16:11
27 July 2015
Paragon Entertainment Limited ("Paragon" or "Company")
Re Agreement with HMRC
Further to the announcement made on 23 July 2015 the Independent Directors of Paragon (being Mark Taylor, Richard Arden and Martin Barratt) have now reached agreement with the original vendors of Paragon Creative Limited (being Mark Pyrah, Peter Holdsworth, Colin Pyrah (father of Mark Pyrah) and Stephen Jackson, together the "Vendors") that as regards the settlement reached between Paragon Creative Limited with HMRC, as announced on 23 July 2015, the Vendors will meet the cash cost now due to HMRC of £129,386.02 from their personal resources and that, in consideration for the waiver by the Vendors of any further deferred consideration of up to £750,000 (either in cash and/or further shares of equivalent value, subject to a limit of 18.75m new shares) which might otherwise now be due, the Company will meet the deferred amounts due to HMRC, amounting to £268,960 over the course of the next 20 months.
Such agreement between the Company and the Vendors is a Related Party Transaction for the purposes of the AIM Rules since Mark Pyrah and Peter Holdsworth are both Directors of Paragon and Mark Pyrah is a holder of 11.3 per cent. of the Company's outstanding shares. The Independent Directors consider, having consulted with finnCap, that the above is fair and reasonable insofar as Shareholders are concerned.
For further information:
Paragon Entertainment Limited
Mark Taylor / Richard Arden 01904 608020
finnCap Limited 020 7220 0500
Corporate Finance: Julian Blunt/Simon Hicks
Corporate Broking: Alice Lane