Update on Transaction
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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 is pleased to update shareholders that the process and due diligence for completing the Transaction continues apace and, in relation to this, amendments have been agreed to certain documents relating to facilitating certain interest payments prior to completion of the Transaction.
The First Announcement describes that Qannas has agreed to meet certain debt service obligations of the vendors of the Portfolio from the date of the two implementation agreements entered into on 3 September 2019 and that an escrow arrangement had been established in this regard. It has now been agreed that in addition to the initial AED 20 million (approximately $5.5m1) deposited into the escrow account with Shuaa (as described in the First Announcement), the third party vendors have agreed with Eagle T2 Limited ("Eagle") to deposit a further AED 5 million (approximately $1.4 million1) into the escrow account with Shuaa to meet other debt service obligations. 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.
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: 01534 844 806
ADCM Ltd. (Investment Manager) Tel: +971 2 639 0099
finnCap Ltd Tel: 020 7220 0500
Henrik Persson / James Thompson
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.
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