Minoan, the AIM listed travel and leisure company, is pleased to announce that it has entered into an agreement (the “Agreement”) with The Candia Investment Corporation (“the Partner”) to create a financial joint venture regarding Minoan’s project in North Eastern Crete (the “Project”) The key terms of the Agreement are as follows; 1. In exchange for an investment of £2 million in cash, the Partner will earn a 10% economic interest in the Project. The funds will be made available in tranches commencing in August 2012 with the final payment becoming due in September 2013; 2. The Partner will have the right to purchase a further 25% share in the Project, for an additional £12.5 million, during an agreed period after receipt of Environmental Approval for the Project; 3. The Partner will be also granted an option to subscribe for up to 4 million new Ordinary Shares in Minoan at an exercise price of 8p per share. Subject to certain conditions the option is exercisable between 1 February 2013 and 30 September 2015; 4. The Agreement contains clauses which may lead to a limited adjustment in both Parties’ interests in the Project; and 5. The Partner and Minoan have agreed to establish a special purpose vehicle (“SPV”) to examine the possibility of creating a revenue producing business through the purchase and/or operation of leisure-related assets in Greece. The shareholding of the SPV will be Minoan 51%, the Partner 49%. Christopher Egleton, Chairman of Minoan, commented: “We are delighted to announce this major strategic partnership today. Shareholders will be aware of the Company’s stated intention to proceed with its Project in Crete by means of entering into desirable joint venture arrangements. As well as establishing a value of £20 million for the Project as it stands today, this agreement releases resources for the expansion of the Group’s Travel and Leisure Division. Following the result of the Greek election I believe that tourism will remain central to Greece’s recovery strategy and we look forward to updating the market on progress in the coming weeks”.
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