AIM Schedule 1 - City of London Group plc (9359Q)

TIDMCIN

RNS Number : 9359Q

AIM

15 September 2017

 
                                      ANNOUNCEMENT TO BE MADE BY THE AIM APPLICANT 
                                      PRIOR TO ADMISSION IN ACCORDANCE WITH RULE 2 
                                      OF THE AIM RULES FOR COMPANIES ("AIM RULES") 
----------------------------------------------------------------------------------------------------------------------- 
 
 COMPANY NAME: 
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   City of London Group plc 
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 COMPANY REGISTERED OFFICE ADDRESS AND IF DIFFERENT, 
  COMPANY TRADING ADDRESS (INCLUDING POSTCODES) 
  : 
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   City of London Group plc 
   6th Floor 
   60 Gracechurch Street 
   London EC3V 0HR 
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 COUNTRY OF INCORPORATION: 
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   England and Wales 
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 COMPANY WEBSITE ADDRESS CONTAINING ALL INFORMATION 
  REQUIRED BY AIM RULE 26: 
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   http://www.cityoflondongroup.com/ 
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 COMPANY BUSINESS (INCLUDING MAIN COUNTRY OF 
  OPERATION) OR, IN THE CASE OF AN INVESTING COMPANY, 
  DETAILS OF ITS INVESTING POLICY). IF THE ADMISSION 
  IS SOUGHT AS A RESULT OF A REVERSE TAKE-OVER 
  UNDER RULE 14, THIS SHOULD BE STATED: 
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   Admission is being sought as a result of a reverse 
   take-over under Rule 14. 
 
   The Company is currently an investing company 
   focusing on providing finance to the SME and 
   professional services sectors. It does this 
   by financing trade and securing specialist funding 
   throughout the supply chain to help fuel growth 
   in these sectors. COLG's main country of operation 
   is the United Kingdom. 
 
   The Company has conditionally agreed the acquisition 
   of Milton Homes, which would constitute a reverse 
   takeover under Rule 14 of the AIM Rules. The 
   Company proposes to change its status from an 
   investing company (for the purposes of the AIM 
   Rules) to a trading company following completion 
   of the acquisition and admission. 
 
   Milton Homes Limited is an equity release provider 
   which has a UK residential property portfolio 
   of 586 properties with a market value of approximately 
   GBP77 million as at 30 June 2017. The Directors 
   plan to start acquiring additional homes for 
   equity release. The restart plan is expected 
   to take 12-18 months and will require updating 
   the business' systems and the rebuilding of 
   Milton Homes' marketing and distribution network. 
   The plan envisages investment of approximately 
   GBP15 million in the first year with a total 
   of GBP100 million over a five year period. 
 
   Going forward, the Company will also continue 
   to operate and grow the business of Credit Asset 
   Management Limited and Professions Funding Limited, 
   its lease and professions funding platform. 
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 DETAILS OF SECURITIES TO BE ADMITTED INCLUDING 
  ANY RESTRICTIONS AS TO TRANSFER OF THE SECURITIES 
  (i.e. where known, number and type of shares, 
  nominal value and issue price to which it seeks 
  admission and the number and type to be held 
  as treasury shares): 
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   TBC 
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 CAPITAL TO BE RAISED ON ADMISSION (IF APPLICABLE) 
  AND ANTICIPATED MARKET CAPITALISATION ON ADMISSION: 
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   Capital to be raised on admission GBP7m 
 
   Market capitalisation of the issued and to be 
   issued ordinary share capital TBC. 
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 PERCENTAGE OF AIM SECURITIES NOT IN PUBLIC HANDS 
  AT ADMISSION: 
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   TBC 
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 DETAILS OF ANY OTHER EXCHANGE OR TRADING PLATFORM 
  TO WHICH THE AIM COMPANY HAS APPLIED OR AGREED 
  TO HAVE ANY OF ITS SECURITIES (INCLUDING ITS 
  AIM SECURITIES) ADMITTED OR TRADED: 
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   None 
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 FULL NAMES AND FUNCTIONS OF DIRECTORS AND PROPOSED 
  DIRECTORS (underlining the first name by which 
  each is known or including any other name by 
  which each is known): 
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 Directors: 
  Lorraine Elizabeth Young - Independent Non-Executive 
  Director 
  Paul George Milner - Non-Executive Chairman 
  (to become Executive Director with effect from 
  Admission) 
  Andrew (Andy) John Crossley - Independent Non-Executive 
  Director 
 
  Proposed Directors: 
  Colin Barry Wagman - Non-Executive Chairman 
  Michael Howard Goldstein - Chief Executive Officer 
  Christopher (Chris) Robin Rumsey - Managing 
  Director 
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 FULL NAMES AND HOLDINGS OF SIGNIFICANT SHAREHOLDERS 
  EXPRESSED AS A PERCENTAGE OF THE ISSUED SHARE 
  CAPITAL, BEFORE AND AFTER ADMISSION (underlining 
  the first name by which each is known or including 
  any other name by which each is known): 
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   The table below assumes that no open offer Entitlements 
   are taken up by Shareholders                      Current interest      Proposed interests        Proposed interests 
                           in the Company         in the Enlarged           in the Enlarged 
                                                  Group following           Group following 
                                                       Open Offer                 Admission 
   --------------  ----------------------  ----------------------  ------------------------ 
             Name         No.        % of       Total        % of         Total        % of 
                           of         the     holding      issued       holding      issued 
                     Existing    Existing      of New    Enlarged        of New     Further 
                     Ordinary    Ordinary    Ordinary    Ordinary      Ordinary    Enlarged 
                       Shares       Share      Shares       Share        Shares    Ordinary 
                                  Capital     at Open     Capital            at       Share 
                                                Offer                 Admission     Capital 
   --------------  ----------  ----------  ----------  ----------  ------------  ---------- 
       Max Barney 
      Investments 
          Limited 
             (and 
          related 
         parties)   8,363,892       22.8%   4,862,624       77.3%    11,307,079      39.42% 
   --------------  ----------  ----------  ----------  ----------  ------------  ---------- 
             Cain 
              Hoy   2,933,473       7.96%     146,673       2.33%       146,673       0.51% 
   --------------  ----------  ----------  ----------  ----------  ------------  ---------- 
          McCourt 
       Shoreditch 
             COLG 
              LLC   2,933,473       7.96%     146,673       2.33%       146,673       0.51% 
   --------------  ----------  ----------  ----------  ----------  ------------  ---------- 
           Helium 
          Special 
       Situations 
             Fund   5,779,428      15.68%     288,971       4.60%       288,971       1.01% 
   --------------  ----------  ----------  ----------  ----------  ------------  ---------- 
           Andrew 
         Crowe(1)   1,905,143       5.17%      95,257       1.52%        95,257       0.33% 
   --------------  ----------  ----------  ----------  ----------  ------------  ---------- 
         Galliard 
         Holdings 
          Limited   1,466,737       3.98%      73,336       1.17%        73,336       0.26% 
   --------------  ----------  ----------  ----------  ----------  ------------  ---------- 
           The BL 
             & RB 
       Foundation   1,325,000       3.60%      66,250       1.05%        66,250       0.23% 
   --------------  ----------  ----------  ----------  ----------  ------------  ---------- 
              DV4           -           -           -           -    14,666,667         51% 
   --------------  ----------  ----------  ----------  ----------  ------------  ---------- 
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 NAMES OF ALL PERSONS TO BE DISCLOSED IN ACCORDANCE 
  WITH SCHEDULE 2, PARAGRAPH (H) OF THE AIM RULES: 
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   BBG Real Estate Advisers LLP who are advising 
   the Company in respect of their leasehold property 
   arrangements for a fee of approximately GBP18,500 
   (plus VAT). 
 
   Michael Hughes - the release from his obligation 
   to repay a debt of GBP100,000 to the Company, 
   a significant proportion of which was set off 
   against a liability for bonus payments due to 
   Michael Hughes from Credit Asset Management 
   Limited, a subsidiary of the Company, as part 
   of the compensation arrangements for the termination 
   of his appointment as a director of that company. 
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 (i) ANTICIPATED ACCOUNTING REFERENCE DATE 
  (ii) DATE TO WHICH THE MAIN FINANCIAL INFORMATION 
  IN THE ADMISSION DOCUMENT HAS BEEN PREPARED 
  (this may be represented by unaudited interim 
  financial information) 
  (iii) DATES BY WHICH IT MUST PUBLISH ITS FIRST 
  THREE REPORTS PURSUANT TO AIM RULES 18 AND 19: 
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                    i) 31(st) March 
                    ii) 31(st) March 2017 with respect to the company; 
                    31 December 2016 with respect to Milton Homes 
                    Limited 
                    iii) 31(st) December 2017 (half year report 
                    to 30(th) September 2017) 
                    iv) 30(th) September 2018 (full year report 
                    to 31(st) March 2018) 
                    v) 31(st) December 2018 (half year report to 
                    30(th) September 2018) 
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 EXPECTED ADMISSION DATE: 
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   5 October 2017 
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 NAME AND ADDRESS OF NOMINATED ADVISER: 
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   Peel Hunt LLP 
   Moor House 
   120 London Wall 
   London 
   EC2Y 5ET 
   United Kingdom 
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 NAME AND ADDRESS OF BROKER: 
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   Peel Hunt LLP 
   Moor House 
   120 London Wall 
   London 
   EC2Y 5ET 
   United Kingdom 
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 OTHER THAN IN THE CASE OF A QUOTED APPLICANT, 
  DETAILS OF WHERE (POSTAL OR INTERNET ADDRESS) 
  THE ADMISSION DOCUMENT WILL BE AVAILABLE FROM, 
  WITH A STATEMENT THAT THIS WILL CONTAIN FULL 
  DETAILS ABOUT THE APPLICANT AND THE ADMISSION 
  OF ITS SECURITIES: 
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   The admission document will contain full details 
   about the applicant and the admission of its 
   securities and will be available here: http://www.cityoflondongroup.com 
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 DATE OF NOTIFICATION: 
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   15 September 2017 
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 NEW/ UPDATE: 
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   New 
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This information is provided by RNS

The company news service from the London Stock Exchange

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September 15, 2017 11:00 ET (15:00 GMT)