Trafalgar Prop Regulatory News (TRAF)

Prior to publication, the information contained within this announcement was deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). With the publication of this announcement, this information is now considered to be in the public domain.

28 May 2019

TRAFALGAR PROPERTY GROUP PLC

("Trafalgar", the "Company" or "Group")

Adviser Appointments, Equity Fundraise & Board Changes

Appointment of Advisers

Trafalgar (AIM: TRAF), the AIM quoted residential and assisted living property developer, announces the appointment of SPARK Advisory Partners Limited ("SPARK") as its Nominated Adviser.

Trafalgar is also pleased to announce the appointment of Peterhouse Capital Limited ("Peterhouse") as its Sole Broker.

Equity Fundraise

The Company announces that it has raised, in aggregate, £250,000 (before expenses), through a placing of, in aggregate, 62,500,000 new ordinary shares of 0.1 pence value each in the capital of the Company ("Ordinary Shares") at an issue price of 0.4 pence per share (the "Issue Price") (the "Fundraising") via the Company's broker, Peterhouse.

The Fundraising is conditional on admission of the new Ordinary Shares to trading on AIM ("Admission") and, following Admission, the new Ordinary Shares will represent, in aggregate, approximately 12.8 per cent. of the Company's enlarged issued share capital.

The new Ordinary Shares will be fully paid and will rank pari passu in all respects with the Company's existing Ordinary Shares. The Issue Price represents a discount of approximately 33.3 per cent. to the closing mid-market price on AIM of 0.6 pence per Ordinary Share on 24 May 2019.

Broker Warrants

In addition, in connection with the Placing, the Company has agreed to award Peterhouse warrants over 6,250,000 Ordinary Shares valid for one year from the date of issue, which shall give Peterhouse the right to acquire 6,250,000 Ordinary Shares of the Company at the Placing Price.

Use of Proceeds

The net proceeds from the Fundraising will be utilised for funding new and existing development projects and will also provide additional general working capital for the Group.

Director's Participation

James Dubois, Non-Executive Chairman of the Company has participated in the Fundraising. Mr Dubois has directly subscribed for 2,500,000 new Ordinary Shares at the Issue Price. As a result of Mr Dubois's participation, he will hold 4,000,000 Ordinary Shares on Admission representing 0.8 per cent. of the Company's enlarged issued share capital.

Board Changes

The Company is pleased to announce the appointment of Paul Arthur Treadaway to the Board as an Executive director and CEO with immediate effect. Paul has held senior positions in both Public and Private Companies using his expertise in construction and land assembly and for many years particularly in the emerging assisted living Retirement Housing market. 

Further to the announcement made on 10 May 2019, Chris Johnson, the CEO, and Alex Johnson, Executive Director, have now stepped down from the Group board. The Company is actively seeking another Non-Executive Director to further complement the board's skillset.

Commenting today, James Dubois, Non-Executive Chairman of the Company, said:

"The Placing, together with our trading in the current year, gives us the working capital to obtain planning permission on various sites that we hold under option. Our principal focus will be on the development of our new Camberley assisted-living project. We are also delighted to welcome Paul to the Board, his experience and understanding of this sector will be a valuable addition. He will bring sound commercial judgement to bear, which will strengthen our depth on issues of strategy, performance and resources."

Admission to Trading

Application will be made to the London Stock Exchange for the admission of the new Ordinary Shares to trading on AIM. It is expected that admission will become effective and dealings commence on or around 31 May 2019.

Following Admission, the total issued ordinary share capital of the Company will comprise 487,690,380 Ordinary Shares.

Further information in relation to Paul Treadaway

Save for the information above and below, there are no further disclosures to be made in accordance with Rule 17, Schedule 2(g) of the AIM Rules for Companies in respect of the appointment of Paul Treadaway.

Full Name: Paul Arthur Treadaway

Age: 68

Mr Treadaway currently owns 106,484,658 ordinary shares which represents 25.04% of the issued share capital of the Company.

Wren Estates Limited, a company of which Paul Treadaway was a director until 10 September 2010, entered receivership on 5 October 2010. There were 8 total insolvency cases with 4 ceasing to act on 4 January 2012. Wren Estates Limited is currently under receiver action.

Enquiries:

Notes to Editors:

Trafalgar Property Group plc

Trafalgar Property Group plc is the holding company of two main operating companies, Trafalgar Homes Limited, an established residential property developer operating in the southeast of England, and Trafalgar Retirement+ Limited, which is focussed on assisted living and extra care developments for the elderly. The founders of both subsidiaries have long track records in their respective specialist property disciplines.

The Company's focus is on the select acquisition of land for residential and assisted living / extra care property development. The Company outsources all development activities, for example the obtaining of planning permission, design and construction, and uses fixed price build contracts, enabling it to tightly control its development and overhead costs.

Trafalgar Retirement+ (formerly named Beaufort Homes, a retirement living property specialist developer, prior to its acquisition by Trafalgar in March 2018) is seeking to capitalise on the burgeoning demand for retirement properties within the South East of England and particularly vis-a-vis the assisted living segment.

For further information visit www.trafalgarproperty.group

This announcement is not intended to, and does not, constitute or form part of any offer or invitation, or the solicitation of an offer, to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of, any securities in the United States of America or Australia or any jurisdiction in contravention of applicable law. The Company's securities have not been and will not be registered under the United States Securities Act of 1933 (the "1933 Act") or under the securities laws of any State or other jurisdiction of the United States and may not be offered, sold, re-sold, delivered, distributed or otherwise transferred, directly or indirectly, in or into, the United States or to U.S. Persons (as defined in the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration is available.