TIDMMAR

RNS Number : 6530F

Mar City PLC

23 February 2015

Mar City PLC

("Mar City" or the "Company")

Share Pledge by Directors

Mar City plc (AIM: MAR) announces that it has today been notified by each of Tony and Maggie Ryan, both of whom are directors of the Company, that they have together granted security over an aggregate of 47,741,875 ordinary shares of 2.5 pence each ("Ordinary Shares") in the capital of the Company in favour of HSBC Bank plc ("HSBC"). The security has been granted to secure a personal loan of GBP10.0 million to Tony and Maggie Ryan ("the Loan"). Mar City Developments Limited ("MCDL), a company owned and controlled by Tony and Maggie Ryan, has also granted security over its holding of 3,150,829 Ordinary Shares as further security to HSBC in connection with the Loan. Accordingly, an aggregate of 50,892,704 Ordinary Shares have been pledged to HSBC ("Pledged Shares"). The entire proceeds of the GBP10.0 million personal loan will be used to fund the part repayment by MCDL of a debt owed to the Company as detailed in the announcement issued by Mar City on 20 February 2015. To this end, GBP6.0 million is expected to be received by the Company from MCDL tomorrow and a further GBP4.0 million is expected to be received from MCDL later this week.

The Loan is subject to various covenants from Tony and Maggie Ryan and certain events of default, the breach or occurrence of which will entitle HSBC to sell some or all of the Pledged Shares. One such event is if the average market price of the Ordinary Shares for a consecutive period of five business days falls below 34 pence per share. In the event of a default leading to a sale of the Pledged Shares, an appropriate announcement would be made at that time. The net asset value per share of Mar City was approximately 62 pence based on the unaudited balance sheet reported in the interim results statement issued in September 2014; the Directors believe that the net asset value of Mar City will be at least this high as at 31 December 2014.

There is no change in the legal or beneficial shareholding in the Company of any of Tony Ryan, Margaret Ryan or MCDL. Mr and Mrs Ryan continue to have an interest and voting rights in 47,741,875 Ordinary Shares representing approximately 43.3 per cent. and MCDL continues to have an interest and voting rights in 3,150,829 Ordinary Shares, representing approximately 2.9 per cent. of the issued share capital of the Company.

 
 Enquiries: 
 
 Mar City PLC                        www.marcityplc.com   www.marcityhomes.com 
 Tony Ryan, Chief Executive                               +44 (0) 20 7408 1102 
 
   Shore Capital, NOMAD and Joint                           www.shorecap.co.uk 
   Broker 
 Pascal Keane / Jamie Cameron                              +44 (0)20 7408 4090 
 
 WH Ireland Limited, Joint Broker                         www.wh-ireland.co.uk 
 Mike Coe                                                 +44 (0) 117 945 3470 
 
 Gable Communications                          marcity@gablecommunications.com 
  John Bick                                               +44 (0) 20 7193 7463

This information is provided by RNS

The company news service from the London Stock Exchange

END

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