The Minoan Group operates a resort development division currently progressing a five star plus quality resort in Crete.
Simplified capital structure, reduced dilution
Minoan Group will publish its interim results for the six months ended 30 April 2020 by the end of August, and at that point provide an update on the status of its development project in Eastern Crete. In the meantime, it has reorganised its secured debt, simultaneously cancelled a net 52m warrants (plus rights to future warrants) and raised £205,000 via a placing at 1.1p/share.
The proposed restructuring, which is subject to shareholder approval at a General Meeting on 6 August will simplify the group’s capital structure and materially reduce potential future dilution. This puts Minoan in a better position to manage its ongoing working capital requirements as it progresses its project. Lockdown has delayed more detailed interactions with potential JVs and partners, preventing face to face meetings and site visits.
The £0.2m raised in the placing will provide some working capital. The statement confirms that the Board has taken significant action to reduce ongoing running costs, to include a decision by Directors to defer and/or forego fees until the group has moved forward with the project.
Finally, the project will coincide with Greek plans to entice foreign pensioners via the offer of a flat rate of income tax at 7% for retired foreigners who transfer their tax residence.Download Now Missing Out Get our research first