Dolphin Capital Investors Limited Shareholder Update (5933W)

TIDMDCI

RNS Number : 5933W

Dolphin Capital Investors Limited

18 April 2023

This announcement has been determined to contain inside information for the purposes of the UK version of the market abuse regulation (EU) No.596/2014.

Dolphin Capital Investors Limited

(the "Company" or "DCI")

Shareholder Update

18 April 2023

Further to the RNS announcement made on 20 March 2023 that the Investment Management Agreement dated 1 December 2021 (the "IMA") between the Company and its Investment Manager ("Dolphin Capital Partners") had been terminated immediately for a repudiatory breach of its obligations to the Company, the Board of the Company wishes to issue an update on progress since then.

The Company continues to believe that the Option Agreement under which Dolphin Capital Partners acquired the right to buy an additional 15% of the share capital of the special purpose vehicle holding the Amanzoe resort that the Company sold in August 2018 was undisclosed and therefore unauthorised by the Company. Accordingly, DCI is seeking to recover the value arising from the Option Agreement from Dolphin Capital Partners. It is currently not clear how material this payment could be.

As announced on 11 April 2023, Dolphin Capital Partners filed a claim against the Company in the English High Court on 6 April 2023 alleging repudiatory breach of the IMA. The Company still believes this claim to be opportunistic and without merit and the Company has now notified Dolphin Capital Partners that it will be filing a counter claim.

Dolphin Capital Holdings, an entity which is associated with Miltos Kambourides the Managing Partner of Dolphin Capital Partners, sold its entire holding of 9.73% in the Company on 6 April 2023 and these shares were bought by some existing Shareholders of the Company as well as one new investor. The Board is pleased by this show of support for their recent actions and the prospects for the Company. Indeed, the Board has received considerable support and encouragement from Shareholders for their recent actions.

Nicolai Huls and Nick Paris who are the two new Managing Directors of the Company are working to stabilise and improve the operations of DCI and have contacted all of its business partners and service providers. Each has reaffirmed their willingness to continue to work with the Company. Operations therefore continue as normal throughout the Company and its portfolio of assets. The Board is confident that it can continue to manage the Company through this short period of transition.

Further finance is being arranged both for the Company's working capital purposes and the continued construction of the golf course and golf clubhouse in phase 1 of the Kilada Hills project in Porto Heli, Greece via loans from certain Shareholders and investors. Further details of these will be announced once the loans are agreed and committed. In addition, the Company expects to be able to apply soon to draw down the first 25% tranche of the Euros 6 million Greek government grant that was awarded to the Kilada project in 2022.

Asset sale efforts are continuing as planned by the Board of the Company prior to the termination of Dolphin Capital Partners. Updates will be issued once any of these reach the stage of a binding commitment from a buyer.

The Board of the Company remains committed to the objectives that were approved by Shareholders at the Company's Extraordinary General Meeting held on 22 December 2021. There are no plans to bring additional assets into the Company.

Terms not otherwise defined within this announcement shall have the same meaning as defined in the announcements made on 20 March 2023 and 11 April, respectively.

Enquiries

 
 Dolphin Capital Investors 
  Nicolai Huls / Nick Paris, Managing Directors                                    [e-mail] 
                                                                                   [phone] 
 finnCap (Nominated Adviser & Broker) 
  William Marle / Jonny Franklin-Adams / Edward Whiley / Milesh Hindocha 
  (Corporate Finance) 
  Mark Whitfeld / Pauline Tribe (Sales)                                            [phone] 
                                                                                -------------------------------------- 
 FIM Capital Limited (Administrator)                                             [e-mail] / [e-mail] 
  Lesley Lennon / Grainne Devlin (Corporate Governance) 
                                                                                -------------------------------------- 
 

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April 18, 2023 05:30 ET (09:30 GMT)