Saturday, December 08, 2007

HVR: Placing of new Ordinary Shares to raise £3.6 million

Further to the announcement of 4 December 2007, Newfound N.V. announces that it has raised £3.6 million (before expenses) by way of a share placing to institutional and other investors of 35,807,962 new ordinary shares. This is in addition to the £7 million subscription by Jeremy White and John Morgan, Directors of the Company, announced on 13 November 2007. The Placing Shares are being issued at 10p per share, which is the same issue price as for the Subscription. The price of 10p per share represents a discount to the closing mid-market share price on 4 December 2007 of 14.9%.

Based upon the valuation undertaken by Humberts Leisure, the international leisure business consultants, announced in the Interim Results on 26 September 2007, the pro-forma NAV per share is calculated at 45p per share following the Subscription and Placing.
The proceeds of the Placing, together with those of the Subscription, will be used for general working capital purposes and to allow the Company to pursue its revised business strategy. The

Company's strategy is to:
FOCUS ON THE CONSERVATION OF WORKING CAPITAL IN THE NEAR TERM, INCLUDING, inter alia, reduction of overheads at Humber Valley Resort;

FURTHER DEVELOP ITS CURRENT PROJECTS TO BUILD ADDITIONAL VALUE AND returns, which will include, inter alia, the development of relationships with branded operators and resort funds, driving sales growth through marketing led development, finalising the Nevis masterplan and obtaining outline planning permission, and the pursuit of debt financing for ongoing resort development supported by the assets of the Group;


EXPAND HOLIDAY SALES THROUGH DIRECT AND SPECIALIST TOUR OPERATORS AND partnerships with holiday sales companies for Humber Valley Resort;

As stated in the Circular to shareholders dated 13 November 2007, there are a number of opportunities in the near term for the generation of additional capital through the operations of the business. In particular, the proposed transaction to sell land at Nevis for the development of a 5 star hotel continues to progress and there are bulk land sale opportunities at both Nevis and Humber Valley that could realise significant cash for the Group. These transactions would provide the Group with a platform from which to continue to develop the resorts at Humber Valley and Nevis. The Company's success in completing some or all of these transactions will, however, inevitably be critical for the prospects of the Group over the longer term.

About Newfound:
Newfound is a creator and operator of international luxury resorts and destinations. The Company has a high quality portfolio of resort projects at Humber Valley in Canada and in Nevis and St. Kitts in the Caribbean.
Humber Valley Resort, with 2,200 acres, currently has over 200 privately owned properties the majority of which are available for rent. It is an all-season, luxury resort offering golf, world-class salmon fishing, sailing, skiing and a luxury spa.
Newfound has an integrated business model based on destination master-planning, which generates revenues from multiple sources, including freehold land sales, construction and development, services to owners, the provision of leisure activities and the operation of concessions.
Newfound is building an industry leading, world-class luxury lifestyle brand offering exceptional holiday experiences in luxurious homes, situated in locations of outstanding natural beauty.
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1 comment:

Anonymous said...

Nice writeup.

They've just been featured here as well:

Keep promoting Newfoundland!