Stanley Gibbons Group PLC Launch of Fractional Ownership of 1c Magenta Stamp (4184R)
November 05 2021 - 2:00AM
UK Regulatory
TIDMSGI
RNS Number : 4184R
Stanley Gibbons Group PLC
05 November 2021
05 November 2021
THE STANLEY GIBBONS GROUP PLC
(the "Company" or the "Group")
Upcoming Launch of Fractional Ownership of the World's Most
Expensive Item By Weight
Stanley Gibbons Group plc is pleased to announce that in
conjunction with its technology partner Showpiece Technologies Ltd
("Showpiece"), a company owned by Phoenix Asset Management Partners
("PAMP"), fractional ownership of the 1c-Black on Magenta (the
"Stamp"), the world's most expensive postage stamp, will be
launching next week.
Graham Shircore, CEO of Stanley Gibbons said:
"We're extremely excited to be able to offer this unique,
first-of-its-kind opportunity which will not only make a true
global treasure available to all to own but increase interest in
the hobby more widely. There's still time to register for
preferential early access through the holding page at
www.showpiece.com, but not for much longer!"
In order to facilitate fractional ownership, the previous
chattel mortgage held over the Stamp by the Group's majority
shareholder, Phoenix S.G. Ltd ("PSG"), a company controlled by
PAMP, i s being replaced by a fixed charge security over the
proportion of the Stamp in which the Company has beneficial
interest and any proceeds of sales of fractional entitlements not
remitted by the Company to PSG to pay down the loan. The headline
terms are however unchanged with a total loan value of GBP6.5
million, a 5-year initial term which can be extended by agreement
between both parties. The loan is interest free with 50 per cent.
of any profit made on the sale of the fractions by the Company,
post the loan value being repaid, due to PSG. Additionally the loan
has been amended in order to create the required flexibility and
protect purchasers of fractions in the Stamp. The proceeds from the
sale of fractions of the Stamp will initially be used to pay down
the loan with any outstanding balance on the loan at the end of the
term now able to be satisfied by the pro-rata transfer of any
unsold fractions of the Stamp from Stanley Gibbons to the
lender.
As part of the process to provide fractional ownership to
collectors in an effective and enjoyable way, Stanley Gibbons has
also entered into a commercial agreement with Showpiece. Showpiece
will provide its services to Stanley Gibbons completely free of
charge throughout the life of the agreement.
As part of the agreement with Showpiece and included in the
terms and conditions, should the legal and beneficial title to the
item be sold in its entirety at some point in the future through a
process managed by Showpiece, Showpiece would receive a fee of 2.5%
of the gross proceeds payable by the beneficial owners of the Stamp
at that time.
Related Party Transaction s
PSG is currently interested in 58.09 per cent. of the issued
share capital of the Company and the change to the above loan
facility constitutes a related party transaction for the purposes
of AIM Rule 13. The agreement with Showpiece also constitutes a
related party transaction for the purposes of AIM Rule 13.
The Independent Directors of the Company consider, having
consulted with the Company's nominated adviser, Liberum Capital
Limited, that the terms of both transactions are fair and
reasonable so far as the Company's shareholders are concerned.
Graham Shircore is the CEO of the Company, a director of Showpiece
and a Partner of PAMP and is not considered independent for the
purposes of these transactions.
For further information, please contact:
The Stanley Gibbons Group plc Tel: +44 (0)207 836
8444
Graham Shircore
Harry Wilson
Liberum (Nominated Adviser and Broker) Tel: +44 (0)203 100
2000
Andrew Godber
Edward Thomas
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END
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