Terra Catalyst Fund Net Asset Value (0333L)

TIDMTCF

RNS Number : 0333L

Terra Catalyst Fund

13 July 2017

13 July 2017

TERRA CATALYST FUND

Net Asset Value of the Company

The Directors of Terra Catalyst Fund ("TCF" or the "Company") announce that the unaudited Net Asset Value ("NAV") for the Company as at 30 June 2017 was 57.49 pence per share. This compares with an unaudited NAV as at 31 May 2017 of 244.05 pence per share.

The 76.4% reduction in the Company's NAV per share is primarily due to a decision by the Directors of TCF to reduce the value of its indirect holding in Spazio Investments NV ("Spazio"). The Company indirectly owns 26.7% of Spazio.

Since 31 July 2014, the Company has valued its holding in Spazio on the basis of the last audited NAV per share disclosed by Spazio. The 'Managing Directors' Report' accompanying Spazio's audited accounts for the years ended 31 December 2014 and 2015, disclosed possible going concern issues. The Investment Manager has been notified of a deterioration in Spazio's financial condition and that it currently has insufficient liquid resources to complete and publish its audited accounts for the year ended 31 December 2016. As such, the NAV per Spazio share at 31 December 2016 is estimated by the Investment Manager and is unaudited.

According to management information provided to Laxey Partners Limited, the Company's investment manager ("Investment Manager") by Spazio, the Investment Manager estimates the NAV of Spazio as at 31 December 2016 to be EUR5.984 per share, calculated on a going concern basis.

Spazio's principal asset is its holding in all 563 of the units issued by Spazio Industriale, a property fund established, managed and regulated in Italy. Spazio Industriale is managed by a regulated property investment manager, IDeA FIMIT. IDeA FIMIT calculates, on a semi-annual basis for Spazio Industriale an NAV per unit in accordance with the rules governing Italian property funds. IDeA FIMIT values each property in the portfolio based on an independent valuation conducted annually. Spazio Industriale's audited NAV as of 31 December 2016 was EUR252,306.49 per unit (totalling EUR142,048,553).

The Board has consulted with the Investment Manager, Spazio, IDeA FIMIT and Celtic Italy (Spazio's Italian property adviser) regarding the current market conditions for selling industrial property in Italy, the requirement to meet debt repayments to Spazio Industriale's banks and Spazio's financial position. As a result, in calculating the Company's NAV per share, the Board has:

   --              reduced the implied carrying value of Spazio to EUR1.5764 per unit; 

-- utilised the Investment Manager's estimate of Spazio's NAV per share, adjusted for the TCF Directors' revaluation of the units in Spazio Industriale; and

   --              made no provision for Spazio not continuing as a going concern. 

Shareholders should be aware that the lack of audited accounts for Spazio will delay the issue of audited financial statements for the Company for the year ended 31 March 2017, however the Directors currently expect that the Company's audited financial statements will be published by 30 September 2017.

This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulation.

ENQUIRIES TO:

Terra Catalyst Fund

Mike Haxby, Director

www.terracatalystfund.com

Tel: [phone]

Smith & Williamson Corporate Finance Limited

Azhic Basirov

Tel: [phone]

This information is provided by RNS

The company news service from the London Stock Exchange

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July 13, 2017 10:30 ET (14:30 GMT)