Ecovista PLC ("Ecovista" or the "Company") Statement re provision of loan In July 2012 we announced that the Company had entered into a Call Option Agreement which if exercised by the 31st December 2015 gives the Company the right to purchase the entire issued share capital of Cignella Srl ("Cignella"). The Call Option Agreement stated that on exercise of the option Ecovista will pay the Cignella shareholders a total consideration of EUR 5 million plus the payment of the existing bank loans. The Company have now agreed to lend Cignella GBP 150,000 by way of an interest free loan for working capital. The loan will be interest free and will be repaid in full by a date which is 12 calendar months after the receipt of the loan by Cignella or, at the written request of the Company, be set off against the consideration payment due from the Company under the Call Option Agreement if the option is exercised. In consideration of providing the loan and as a result of the reduction of the assets Cignella since the Call Option Agreement was signed, as a result of the disposal of some of the properties, the consideration payable on the exercise of the option has been reduced to the sum of EUR 4.5m . Furthermore, if there are any further disposals of properties, the consideration payable will be reduced again. The Cignella Estate ( http://www.tuscan-living.com/the-cignella-estate ) is an "Eco Village" offering exclusive villa rentals powered by a state of the art geothermic system. Set in a striking position on a hill top overlooking the glorious southern Tuscan countryside this is a development of 18 villas over the 200 acre estate. The Cignella Estate is situated some 20 miles south-east of Siena in southern Tuscany , close to the wine country of Chianti and Brunello and within half an hour of the magnificent towns of Siena, Cortona and Montepulciano. Due diligence is still being carried out however an initial independent valuation shows a value of the estate in excess of EUR 10.5 million . The board believe this is a very exciting transaction for our shareholders and are confident in the quality of this project, which they hope will in the long term, significantly enhance shareholder value. The Directors of the Company accept responsibility for this announcement. Luca Tenuta ECOVISTA Plc Tel: 07900 242 769 Nick Michaels Alfred Henry Corporate Finance Limited Tel: +44 (0) 20 7251 3762
Most Popular Stories
- Koch Brothers Step up Anti-Obamacare Campaign
- FDIC Accuses Big Banks of Fraud, Conspiracy
- Is Malaysian Airlines Flight 370 in Andaman Sea?
- Vybz Kartel Convicted of Murder
- Stocks Close Lower Ahead of Crimea Vote
- FDIC Sues Big Banks Over Rate Manipulation
- Ulta Shares Look Good on Strong Q4
- Jittery Investors Dumping Russian Stocks
- U.S. Consumer Sentiment Falls in Early March
- JLo Turns the Tables in New Vid: 'I Luh Ya Papi'