Last checked at 12 Aug 2019 12:28
TRAFALGAR PROPERTY GROUP PLC
("Trafalgar", the "Company" or "Group")
Refinancing of debt
Trafalgar (AIM: TRAF), the AIM quoted residential and assisted living property developer, is pleased to announce that it has secured financing of £910,000 from a third party lender to refinance the Company's current loans secured on Flat 2 Burnside Close and Orchard House in Hildenborough (the "Residential Properties") previously held in its subsidiary Trafalgar New Homes Ltd (the "Refinancing").
Chris Johnson and Alex Johnson have provided guarantees for the loans subject to the Refinancing (the "Guarantees"). Chris Johnson and Alex Johnson are both former directors of the Company and Chris Johnson owns 38.31% of the issued share capital of the Company.
Prior to the Refinancing, the Company acquired Selmat Ltd ("Selmat") from Chris Johnson for a cash consideration of £1 (the "Acquisition"). Selmat, prior to the Acquisition, had been considering the purchase of the Residential Properties and had obtained due diligence and valuation reports which Trafalgar has been able to use in order to facilitate the Refinancing.
At the time of the Acquisition, Selmat had net assets of £1. The sale and purchase agreement entered into by the Company with Chris Johnson contained appropriate warranties and indemnities for the benefit of Trafalgar.
Related Party Transaction
Chris Johnson is a substantial shareholder in Trafalgar, owning 38.31% of the issued share capital of the Company. Both he and Alex Johnson have also been directors of Trafalgar within the past 12 months. Accordingly, both Chris Johnson and Alex Johnson are regarded as related parties and the Acquisition and guarantee of the loans subject to the Refinancing are therefore regarded as related party transactions under the AIM Rules. The directors of the Company, having consulted with SPARK Advisory Partners Limited, the Company's nominated adviser, consider that the terms of the Acquisition and Refinancing are fair and reasonable insofar as Trafalgar's shareholders are concerned.
Enquiries:
Trafalgar Property Group plc James Dubois
| +44 (0) 7899 995 421 |
SPARK Advisory Partners Limited - AIM Nominated Adviser Matt Davis
| +44 (0) 203 368 3550 |
Peterhouse Capital Limited - Broker | +44 (0) 20 7409 0930 |
Duncan Vasey/Lucy Williams
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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.
Notes to Editors:
Trafalgar Property Group plc
For further information visit www.trafalgarproperty.group