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CLR-Cyprus Dev. Bank cancel plans for Toxotis

With reference to correspondence forwarded to the CSE by CLR Financial Services Ltd. of the 28 September 2000 and 31 October 2001, concerning the framework of the agreement signed by CLR Financial Services Ltd. with the Cyprus Development Bank Ltd. for the restructuring of the share structure of Toxotis Investments Ltd. (the company) and its conversion into a venture capital company and for participations in companies before becoming public, CLR Financial Services Ltd. announced that the two parties have decided not to proceed with implementation of the agreement framework for the following reasons:

1. The agreement framework provided amongst others, for the transfer to the company by the Cyprus Development Bank Ltd. and the CLR group, a number of their participation projects in private companies for the enhancement of the portfolio of the company. Payment would be the issuance of new shares of the company at a price to have been agreed and which would not have greatly varied from their stockmarket value. The evaluation of the said participations was undertaken by independent consultants and was completed recently. Meanwhile, the stockmarket value of the company has been reduced to such a level whereby the issuance of new capital for acquisition of the above interests would be contrary to the best interests of shareholders of the company.

2. An important element of the agreement framework was that participation would be sought by other strategic investors up to 20%. Despite efforts however by both sides, participation by other strategic investors has not been possible.
Thursday, 1 November, 2001 - 10:09