11 July 2013
Feedback plc
("Feedback", the "Company" or the "Group")
Disposal of freehold property
On 14 May 2013 the Company announced that it was in of the process of selling its freehold property at Park Road, Crowborough, East Sussex TN6 2QR ("Property"). Following that announcement the Company completed the sale of Feedback Data plc, which was the Company's last trading business, and became an Investing Company for the purposes of the AIM Rules. Other than some minor cash balances the Property is the only remaining asset in the Company. Consequently, the Disposal constitutes a fundamental change of business under Rule 15 of the AIM Rules and is therefore conditional on the approval of Shareholders.
Principal Terms of the Disposal and Use of Proceeds
The Company will be seeking Shareholder approval to dispose of the Property for a consideration of not less than £940,000 in cash.
In the event that the purchase price agreed with a buyer is lower than £940,000 then the Company will not be able to conclude the transaction without first seeking the approval of its Shareholders at a further General Meeting convened for that purpose.
The proceeds of the Disposal, once concluded will be used to extinguish all of the Company's outstanding indebtedness, which amounts to approximately £200,000, with the remaining balance being retained for working capital purposes and used to make investments in accordance with the Investing Policy, details of which are set out below.
Reasons for the Disposal
As the Company no longer has a trading business the Company and its group no longer require the Property. The board are of the view that rather than retain the Property, greater returns can be achieved for Shareholders by selling the Property and reinvesting the proceeds. The Directors also believe that having a larger pool of capital to invest will broaden the opportunities that are available to the Company.
Notice of a General Meeting
Today, the Company will be posting to Shareholders a Circular and Notice of General Meeting calling a general meeting for 9.00 a.m. on 29 July 2013 at the offices of Sanlam Securities UK Limited, 10 King William Street, London EC4N 7TW.
Nick Shepheard, Executive Chairman, commented:
"I am pleased that we continue to make progress and once the disposal of the Property is complete the Company can look towards implementing its Investing Policy and making investments that can once again maximise shareholder value."
For further information contact:
Feedback plc |
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Nick Shepheard |
Tel: 020 3289 7747 |
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Sanlam Securities UK Limited (Nominated Adviser and Broker) |
Simon Clements/Lindsay Mair |
Tel: 020 7628 2200 |
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