Acquisition of land for development in Argentina

RNS Number : 8878I

Craven House Capital PLC

05 September 2016

 

5 September 2016

Craven House Capital Plc

("Craven House" or the "Company")

Acquisition of land for development in Argentina and

Issue of Equity

The Company today announces that it has acquired a parcel of residential development land in the growing residential and tourist area of Cafayate, in the Salta province of northern Argentina.

The 7,060 square metre plot has been acquired for $365,000‎. The entire consideration will be paid from the proceeds of a simultaneous share subscription by the seller of the plot for 29,200 new Ordinary Shares in the Company priced at $12.50, amounting to an aggregate subscription of $365,000.

Application has been made to the London Stock Exchange for the new Ordinary Shares to be admitted to trading on AIM. Admission is expected to take place on 9 September 2016. The shares will rank pari passu with the existing issued ordinary shares.

Mark Pajak, Acting Chairman, commented:

"Cafayate is a truly unique and extremely attractive community in an increasingly popular part of Argentina's wine country. We are delighted to have secured this development plot and to once again have secured an excellent asset utilizing the Company's shares as an acquisition currency, with the shares issued at a premium to the current market price. We are currently evaluating further land acquisitions in the region."

Following the issue of the new Ordinary Shares, the Company's total issued share capital will consist of 2,073,562 ordinary shares with each share carrying the right to one vote. The Company has no ordinary shares held in treasury. The total of 2,073,562 ordinary shares may therefore be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

For further information please contact:

Craven House Capital Plc Mark Pajak www.Cravenhousecapital.com	Tel:   [phone]
SPARK Advisory Partners Limited Nominated Adviser Matt Davis/Mark Brady www.sparkadvisorypartners.com	Tel:   [phone]
SI Capital Broker Nick Emerson www.sicapital.co.uk	Tel:   [phone]

Notes to Editors:

About Cafayate:

"Argentina's second center for quality wine production, Cafayate is a popular tourist destination but still has a tranquil small-town feel. It's spectacularly scenic, with the green of the vines backed by soaring mountains beyond, and is one of northwest Argentina's most seductive destinations. It's easily reached from Salta via the tortured rockscapes of the Quebrada de Cafayate; it's also a major stop on RN 40 and the Valles Calchaquíes route. With a selection of excellent accommodations for every budget, and several wineries to visit in and around town, it invites an extended stay.

Cafayate is famous for its torrontés, a grape producing aromatic dry and sweet white wines, but bodegas hereabouts also produce fine reds from cabernet sauvignon, malbec and merlot."

About Craven House Capital

Craven House Capital is a frontier and emerging market focused merchant bank seeking value oriented long term investments. Craven House invests in all segments of the capital structure in partnership with local entrepreneurs and the local business community. Craven House provides long term patient capital and is often involved in restructuring, expansion and turn around investments in crisis and transitioning economies.

 

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