New Opening and Related Party Transactions

RNS Number : 9327P

Everyman Media Group PLC

24 February 2016

 

Everyman Media Group plc ("Everyman" or the "Company")

New Opening and Related Party Transactions

The Company is pleased to confirm that it has today agreed terms on a sale and leaseback for its proposed Harrogate site ("Sale and Leaseback").  Everyman expects to open a new cinema on the site during the second half of 2016.

The Company exchanged contracts on a 999 year long term lease for the site in August 2014, for a total purchase price of £3.18 million, and completion of the contract is expected by April 2016 (the "Long Term Lease").  Upon completion of the contract, Everyman has today agreed to sell the Long Term Lease to Six Guys LLP for a total consideration of £3.25million. Immediately upon acquisition, Six Guys LLP will lease the site back to the Company for 25 years at an initial annual rental cost of £234,000.

Six Guys LLP is a limited liability partnership controlled by Adam Kaye and Paul Wise, both directors of the Company. The Company has received advice as to the sale value and rental value of the site, which included the commission and review of three independent valuation reports.  Accordingly, the Board (excluding Adam Kaye and Paul Wise) are able to confirm they believe the terms of the Sale and Leaseback represent fair market value.

Adam Kaye and Paul Wise are considered a "related party" (as defined by the AIM Rules) of the Company by virtue of being directors of the Company. The Sale and Leaseback is therefore considered to be a related party transaction. The Directors (excluding Adam Kaye and Paul Wise) consider, having consulted with Cenkos Securities plc, the Company's Nominated Adviser for the purposes of the AIM Rules, that the terms of the Sale and Leaseback are fair and reasonable insofar as the shareholders of the Company are concerned.

In addition to the above, the Company has been informed by Adam Kaye and Paul Wise that a company controlled by them has acquired the freehold of the Company's proposed Whiteladies Road, Bristol cinema on the open market. The Company was not a party to this transaction. The Company exchanged contracts on a 25 year lease for the Whiteladies Road, Bristol site in February 2014. The landlord at the time of acquiring was a third party unconnected to either the Company or the directors of the Company. The rental income payable under the lease for the Whiteladies Road, Bristol remains unchanged.

24 February 2016

For further information, please contact:
Everyman Media Group plc Crispin Lilly - Chief Executive Officer Jonathan Peters - Finance Director	Tel: [phone]
Cenkos Securities plc (NOMAD and Broker) Bobbie Hilliam Harry Pardoe	Tel: [phone]

 

END

 

 

MSCTJMPTMBJTBAF