TIDMENGI
RNS Number : 0750X
Energiser Investments PLC
16 February 2017
16 February 2017
Energiser Investments plc
('Energiser' or the 'Company')
Trading Update, Notice of General Meeting and Grant of
Options
Summary
-- The last available residential unit at the Kingswood, Surrey
development has been reserved for sale at GBP725,000
-- The Company's portfolio of 20 residential properties in
Wellingborough, Northants is being considered for sale
-- A number of potential transaction opportunities are under review
-- Notice of General Meeting to provide the Directors with headroom to raise additional funds
-- Grant of options to Chief Executive
Trading Update
The Company is pleased to announce progress in a number of areas
relating to its investment and portfolio strategy.
Existing Investment Assets
Energiser, through its lending subsidiary, supplied a mezzanine
loan to a company that was to build 12 residential units. The
Company is pleased to learn that the last remaining unit at the
site has now successfully been reserved for sale at a price of
GBP725,000. This sale will repay all partners in the loan
investment and deliver a profit to Energiser.
The asset plan at the 20 residential units in Wellingborough,
Northamptonshire has been to increase rental income and hold for
the medium term. This plan has now been delivered and the Directors
believe that it may now be beneficial for the Company to consider
the realisation of the value and cash from this investment. The
capital returned from a sale will be re-invested into new
opportunities.
Potential New Transactions
Following the successful equity fund raising in December 2016,
Energiser has analysed a number of opportunities in the real estate
sector. The team has narrowed its focus onto opportunities in
operating companies in the UK Serviced Apartment sector. Albeit at
an initial stage, the Company has identified three potential
opportunities and expects to shortly start its due diligence
process. Whilst no certainty can be given as to the likelihood of
these particular opportunities leading to a transaction, the
Company is confident that the Serviced Apartment sector is an
attractive area for investment.
Serviced apartments are relatively recent products in the
lodging industry that have gained significant popularity in recent
years. London is the most mature serviced apartment market in
Europe, although it is still one of the smallest markets
internationally compared to cities such as New York and Hong
Kong.
The Company believes that this sub-sector of the real estate
market is growing fast and that the trading outlook is positive.
The Company will update the market relating to any specific
transactions in due course.
Notice of General Meeting
Following the Company's fundraising in December 2016, and, in
the opinion of the Directors, as a result of the quality of
opportunities the Company has reviewed, the Directors would like to
be in a position to be able to raise further funds quickly should
an opportunity present itself.
Accordingly, the Company will today post a notice of general
meeting ("GM") to all shareholders. The meeting will request
shareholder approval to authorise the directors to allot shares and
dis-apply statutory pre-emption rights in respect of shares with an
aggregate nominal value of GBP220,000, with such authorities to
expire on the conclusion of the next Annual General Meeting of the
Company.
The Company's GM will be held at 11.00 a.m. on 6 March 2017 at
Decimal Place, Chiltern Avenue, Amersham, Buckinghamshire, HP6
5FG.
Grant of Options
To further align management with shareholders the Company
announces that it has granted 1,500,000 options to Dominic White,
Chief Executive, having successfully completed the recent capital
raise of GBP1.255m and moving forward with the Company's strategy.
The options granted to Mr White are subject to multiple performance
related vesting criteria as follows.
- 25% will vest after 12 months from the date of grant;
- 25% will vest after 24 months from the date of grant;
- Excluding any further equity fund raising but including
profits in connection with investments made using further equity
fund raising:
o 25% will vest once the company's net asset value increases to
GBP2.2m; and
o 25% will vest once the company's net asset value increases to
GBP2.87m.
Mr White's options have an exercise price of 3.25 pence per
share and are exercisable between the third and tenth anniversaries
of the date of grant.
Following the grant of these options, the Company would have
outstanding options to subscribe for a) 10,850,000 Ordinary Shares
at an exercise price of 2.0 pence per share, b) 1,500,000 Ordinary
Shares at an exercise price of 2.75 pence per share, and c) 900,000
Ordinary Shares at an exercise price of 20.0 pence per share, which
represents 10.7 percent of the shares currently in issue.
Related Party Transaction
The grant of options to Mr White is a related party transaction
pursuant to Rule 13 of the AIM Rules for Companies. With the
exception of Mr White who is involved in the transaction, its
directors consider, having consulted with its Nominated Adviser
Cairn Financial Advisers, that the terms of the transaction are
fair and reasonable insofar as its shareholders are concerned.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014
Enquiries:
Energiser Investments
Plc
Dominic White, Chief
Executive 01494 762450
Nishith Malde, Director
Cairn Financial Advisers
LLP
Jo Turner 020 7213 0880
Sandy Jamieson
This information is provided by RNS
The company news service from the London Stock Exchange
END
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