Qannas Investments Limited Update on Transaction (3993X)

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RNS Number : 3993X

Qannas Investments Limited

18 December 2019

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT SECURITIES LAWS OF SUCH JURISDICTION

Qannas Investments Limited

("Qannas" or the "Company")

Update on Transaction

Qannas announced on 3 September 2019 (the "First Announcement") that it had conditionally agreed to acquire a substantial portfolio of investment assets (the "Portfolio") from a consortium of third party vendors (the "Transaction"). Qannas announced on 4 November 2019 (the "Second Announcement") that the escrow agreement in relation to the Transaction would be amended to allow further funds to be deposited into the escrow account with Shuaa Capital PSC ("Shuaa") to meet further debt service obligations of the vendors of the Portfolio.

Similar to the amendments described in the Second Announcement, the third party vendors have agreed with Eagle T2 Limited ("Eagle") to deposit a further AED 5 million (approximately $1.4 million(1) ) into the escrow account with Shuaa to meet debt service obligations arising in December. All other terms and effect of the escrow arrangement are as described in the First Announcement, and therefore it remains the case that the escrow arrangement is not expected to have an impact on the net asset value of Qannas following completion of the Transaction.

Shareholders are reminded that the Company announced on 29 November 2019 that it intends to seek the cancellation of trading on AIM of its ordinary shares (the "Cancellation"). The Company intends to complete the Transaction subsequent to the Cancellation and work continues to facilitate this as soon as possible.

The entry into this amendment by Qannas is a related party transaction pursuant to the AIM Rules as Eagle and Qannas' investment manager, ADCM Ltd., are wholly owned subsidiaries of ADFG. ADFG is also a substantial shareholder (as defined in the AIM Rules) of Qannas. The independent directors of Qannas (being Chris Ward and Richard Prosser), having consulted with Qannas' nominated adviser, finnCap, consider its terms to be fair and reasonable insofar as the independent shareholders of Qannas are concerned.

Shareholders should refer to the First Announcement for more information with regard to the Transaction and its terms. Defined terms in this announcement are, unless otherwise specified, consistent with the First Announcement.

(1) assumes AED:USD exchange rate of AED 3.675: USD 1

For further information please contact:

   Qannas Investments Limited                       Tel: [phone] 

Nadia Trehiou

   ADCM Ltd. (Investment Manager)            Tel: [phone] 

Mustafa Kheriba

   finnCap Ltd                                                   Tel: [phone] 

Henrik Persson / James Thompson

Important notice

This announcement is for information purposes only and is not intended to and does not constitute, or form part of, any offer or invitation to purchase, subscribe for or otherwise acquire or dispose of, or any solicitation to purchase or subscribe for or otherwise acquire or dispose of, any securities in any jurisdiction. The information in this announcement does not purport to be full or complete and is subject to change without notice.

finnCap Ltd ("finnCap"), which is authorised and regulated in the United Kingdom by the FCA, is acting as nominated adviser and broker to the Company and no one else in connection with the Transaction, and will not regard any other person as its client or be responsible to anyone other than the Company for providing the protections afforded to its clients or for providing advice in relation to the Transaction or in relation to the contents of this announcements or any transaction, arrangement or matter referred to herein.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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December 18, 2019 13:31 ET (18:31 GMT)