Business
Proxy update
Proxy update.
About this update from Character Group Plc
[{"type":"text","content":"\n \nRNS Number : 9721A Character Group PLC 03 June 2019 \n\n \nThe information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain\nMonday, 3 June 2019\nThe Character Group plc\n(\"Character Group\", \"Group\" or the \"Company\")\n \nUpdate on Proxy\n \n \nThe Board of Character Group (AIM: CCT) (the \"Board\") provides the following update to shareholders on the progress made with resolving the increased working capital requirements arising in relation to OVG-Proxy A/S (\"Proxy\"), the Danish incorporated toy distributor in which the Group, through its subsidiary Character Nordic Limited (\"CNL\"), acquired a 55% equity interest in October 2018. \nAs stated in the Group's interim report published on 9 May 2019, the liquidation of Top-Toy (a leading retailer in the in the toy markets of the Nordic territories) has caused systemic disruption in the region. The vacuum in the market resulting from Top-Toy's demise has created exciting new and additional growth opportunities for Proxy. A number of overseas toy companies who had exclusive distribution arrangements with Top-Toy are now offering their Nordic distribution to Proxy. Already, Proxy has secured the distribution rights for Little Live Pets and Laser X. There is an opportunity for Proxy's existing and new customers to further increase market share in the region. This bodes well for Proxy's future growth prospects.\nThe Board has been working with the management of Proxy, who retained 45% of the equity of Proxy at the time of the acquisition, to exploit these opportunities and to secure Proxy's long-term future and financial independence from the Group. \nOn Friday, 31 May 2019, the Company entered into an agreement (the \"Agreement\") with the other shareholders of Proxy, Kidz A/S (\"Kidz\") and Wamami Holding APS (\"Wamami\") (companies owned respectively by Proxy's CEO, Morten Geschwendtner and Proxy's CFO, Mikkel Kjærsgaard), to provide credit facilities and security to support ongoing banking facilities for Proxy, details of which are contained below. As con...