Business
Property Purchase
Property Purchase.
About this update from Feedback Plc
[{"type":"text","content":"\n Feedback PLC\n24 April 2008\n\n Feedback plc (the 'Company' or the 'Group')\n\n Acquisition of Freehold Property, Placing of New Ordinary Shares ('Placing')\n\n and Update on Trading\n\n\n\nThe Company announces that yesterday it agreed to acquire the entire issued\nshare capital of Brickshield Limited which also yesterday completed the\npurchase of the freehold premises in Crowborough, East Sussex, currently\noccupied by the Group, for a total consideration of £1.35 million, payable in\ncash (the 'Acquisition').\n\n\n\nThe consideration for the Acquisition is being met from the Company's existing\nworking capital resources and the proceeds of the Placing, as detailed below.\nThe Placing is conditional upon the Company obtaining approval from Shareholders\nto allot the Placing Shares and to disapply statutory pre-emption rights which\nwould otherwise apply. Accordingly, the Group will shortly be posting a\ncircular to Shareholders that will contain a notice convening a General Meeting.\n\n\n\nBackground to the Acqusition\n\n\n\nThe light industrial premises at Park Road, Crowborough were previously sold by\nthe Group in March 2005 for £955,000, conditional upon full residential planning\npermission for the re-development of the site, and was part of the restructuring\nproposals undertaken by the Group to address its historic pension fund\nliabilities. Planning permission was granted in February 2007 and at that time\nit was envisaged that the Group would vacate the premises by December 2007.\n\n\n\nAlthough the Company subsequently obtained consent to remain at the premises\nuntil April 2008 the Board has been unable to identify suitable alternative\npremises for the Group within the local area. The Board considered that this\nwas not in the interests of the Company and Shareholders and accordingly\nresolved to remain at the current premises, at least in the medium term. This\nwas only possible via the repurchase of the Crowborough site.\n\n\n\nThe Directors believe that this situation will be resolved in due course,\nwhereupon it is expected that the premises will be sold. Remaining at the Park\nRoad premises will, in the Directors' opinion, provide for a further period of\nstability for the Group's operations, whilst allowing the continued ongoing\nreview of costs that the Board regards as an integral part of Feedback's f...