CHA Concha

TIDMCHA

RNS Number : 2032D

Concha plc

11 May 2012

11 May 2012

Concha Plc

("Concha" or the "Company")

Trading Update

The board of directors of Concha (the "Board") is pleased to provide an update regarding recent activity. Since the successful sale of the "Hot Tuna" brand and certain assets in January 2012, the Board has undertaken a closure of the legal and operational structure of its former business in such territories as Australia and the USA (the "Hot Tuna Business"). This process has now been completed and no further activity is anticipated in respect of the Hot Tuna Business. Other than the loan agreement referred to below, Concha is now a clean cash shell ideally positioned to pursue a strategic acquisition opportunity in line with its stated investment strategy.

Loan Agreement

As the Company announced on 13 March 2012, the Company entered into a loan facility agreement with Churchill Media Limited ("Churchill"), under which the Company would provide up to GBP750,000 of capital to Churchill (the "Loan Agreement"). Under the terms of the Loan Agreement, Concha was required to approve on any significant items of expenditure incurred by Churchill in excess of GBP25,000.

As at the date of this announcement Churchill has drawn down GBP645, 000 on the terms of the loan agreement which incorporated an interest rate of 6% above LIBOR.

We are informed by Churchill that the funds drawn down have been utilised to invest in media, technology and telecommunication businesses. One of the companies in which Churchill has made an investment in is one where M Barney Battles is a minority shareholder and nominee board director and consequently Marcus Yeoman, acting as the independent director of Concha, reviewed the draw down request from Churchill.

The loan remains repayable on demand and no later than 9 January 2013.

Working Capital

As at the date of this announcement, the Company retains over GBP300,000 of cleared funds before settlement of a historic outstanding VAT matter in addition to other potential contingent liabilities totalling, in aggregate, up to approximately GBP175,000. The Board is confident that these will be settled shortly.

Future Activity

The Board continues to explore a number of possible acquisition opportunities and looks forward to providing shareholders with a further update in due course.

Enquiries:

 
 Concha plc 
 M Barney Battles, Non-Executive Chairman    Tel: 0778 976 6242 
 
 Seymour Pearce (Nominated Adviser and Broker) 
 Mark Percy / Catherine Leftley (Corporate   Tel: 020 7017 8000 
  Finance) 
 Katie Ratner (Corporate Broking) 
 
 

Notes to Editors

Concha PLC is an AIM listed investment vehicle created after the disposal of certain intellectual property and assets of the "Hot Tuna" fashion brand.

http://www.Conchaplc.com/

This information is provided by RNS

The company news service from the London Stock Exchange

END

TSTLLFLSETILLIF

Concha (LSE:CHA)
Gráfico Histórico do Ativo
De Jun 2024 até Jul 2024

Concha (LSE:CHA)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024