Manx Financial Group PLC Manx Financial raises GBP2m of additional capital (1308C)
October 15 2020 - 2:00AM
UK Regulatory
TIDMMFX
RNS Number : 1308C
Manx Financial Group PLC
15 October 2020
FOR IMMEDIATE RELEASE 15 October 2020
Manx Financial Group PLC
(the "Company")
Manx Financial Group PLC raises GBP2 million additional
regulatory capital
The Company's Independent Directors (being all the Directors
with the exception of James Mellon, Dr Greg Bailey and Denham Eke),
have carefully considered the most suitable method of further
augmenting the regulatory capital available to its subsidiary
company Conister Bank Limited ("Conister"), both to continue the
excellent growth in lending opportunities, and also to take
advantage of potential further acquisition. As Conister enjoys
increasingly high levels of liquidity from customers' deposits,
this liquidity must be underpinned by its own separate regulatory
capital on the basis of a ratio as directed under the Isle of Man
banking licence.
As a result, and having considered other methods of raising
capital, the Independent Directors have resolved, following
negotiation, to accept on arms-length and standard commercial
terms, two loans of GBP1.0 million each. Each loan is for five
years, with a coupon of 6.0% per annum, is repayable at any time
and has no conversion rights. One loan is from Burnbrae Limited
("Burnbrae"), 100% beneficially owned by Jim Mellon and of which
Denham Eke is a director, and the other is from Culminant
Reinsurance Ltd ("Culminant"), 100% beneficially owned by Dr Greg
Bailey. Following this, the unaudited prudential ratio of Conister
will be 18.9% which compares very favourably with other banking
institutions.
Due to James Mellon being the 100% beneficial owner and both he
and Denham Eke being directors of Burnbrae and Dr Greg Bailey being
the 100% beneficial owner and director of Culminant, the two loans
are Related Party Transactions under the AIM Rules. Accordingly,
the Independent Directors consider, after consulting the Group's
Nominated Adviser, that the terms of the loans are fair and
reasonable insofar as the Group's shareholders are concerned.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation No. 596/2014 on market abuse. Upon
the publication of this announcement via a Regulatory Information
Service, this inside information is now considered to be in the
public domain .
For further information, please contact:
Manx Financial Group Beaumont Cornish Limited Greentarget Limited
PLC Roland Cornish/James Dafina Grapci-Penney
Denham Eke, Chief Executive Biddle Tel +44 (0) 203 963
Tel +44 (0)1624 694694 Tel +44 (0) 20 7628 1887
3396
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END
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