22 July
2024
Eight Capital Partners
plc
("ECP", "Eight Capital" or
"the Company")
1AF2 Bond
Update
Eight Capital Partners plc (AQSE:
ECP), the financial services operating company that aims to grow
revenue through businesses engaged in "Fintech" operations
including in the digital banking and lending sectors, announces an
update to the repayments owed to the Company by 1AF2 Limited
("1AF2") relating to the bonds purchased in 2021, with further
information below.
In August 2021, as noted in the
Final Accounts for the year ended 31 December 2023 announcement
published on 2 July 2024, Eight Capital purchased EUR 40million
2.5% fixed rate secured bonds (the "Bonds") in 1AF2. The Bonds were
issued by 1AF2 Limited, a private company registered in England,
which is a wholly owned subsidiary of The Avantgarde Group S.p.A.
("TAG"), an Italian private holding company invested in the fintech
sector. TAG provided a security package for the Bonds
which is described in the Company's final
accounts for the year ended 31 December
2023. The Bonds are due for repayment by 22 July
2024.
At the time of issue of the
Company's annual accounts earlier this month, the liquidation of
the security package was not the issuer's intended method of
repayment of the bond. The issuer has again confirmed to ECP
that it remains their intention to fulfil all of their obligations
from sources of capital other than the security
package.
The Company has received a proposal
from 1AF2 and TAG to acquire the 1AF2 Bond from ECP at par value
with settlement in cash, public securities and private assets.
The negotiations are advancing and ECP is optimistic of
completing and executing a sale agreement in due course. TAG
has proposed transferring EUR 4m of assets to ECP as additional
security while this process completes, albeit this has not yet
occurred.
The Company is exploring all its
options to ensure the best outcome for its shareholders. Should a
sale not be finalised, the Company retains its rights to implement
a recovery process through the security package with further
recourse through the issuer's guarantor TAG.
The Company will keep the market
apprised of developments.
The Directors of the Company accept
responsibility for the content of this announcement.
This announcement contains inside information for the purposes
of the UK Market Abuse Regulation and the Directors of the Company
are responsible for the release of this
announcement.
For further information, please
visit www.eight.capital or contact:
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Eight Capital Partners plc
Dominic White, Chairman
Luciano Maranzana, Group
CEO
|
info@eight.capital
|
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Cairn Financial Advisers LLP
AQSE Corporate Adviser
Jo Turner / Liam Murray
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+44 20 7213 0880
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About Eight Capital Partners:
Eight Capital partners plc is a
financial services operating company that aims to grow revenue
through businesses engaged in "Fintech" operations including in the
digital banking and lending sectors.
ECP seeks to grow its group revenue
in these high growth fintech sub-sectors, which it expects to also
increase in value, such that they generate an attractive rate of
return for shareholders, predominantly through capital
appreciation.
www.eight.capital
Eight Capital Partners operates two subsidiary
businesses:
Epsion
Capital:
Epsion Capital is an independent
corporate advisory firm based in London with an extensive
experience in UK and European capital markets. The team of senior
and experienced ECM and M&A professionals is specialised across
multiple markets, sectors and geographies and it prides itself on a
commercial approach that allows the clients to achieve their growth
ambitions. www.epsioncapital.com