Cantina Augusto plc
LSE : CANP

March 18, 2011 12:26 ET

Sale of Cantina Augusto Restaurant

                                            Cantina Augusto Plc
                                       ("Cantina" or "the Company")

                                    SALE OF CANTINA AUGUSTO RESTAURANT


Following  the announcement on 28 February 2011, which announced the cessation of trading of Pucci Pizza,
the Company announces today that it has sold the trading business of the restaurant Cantina Augusto in
Clerkenwell, London (the  "Restaurant") to Rivington Street Ventures Limited ("RSV") for £1 plus the
assumption of all outstanding liabilities of the Restaurant and certain of Cantina's liabilities. The Board
considered that this sale is in the best interests of the Company as it struggled to overcome the
Restaurant's losses, which were exacerbated by the continuing economic downturn.

As a consequence of this sale, RSV has agreed to assume approximately £220,000 of the Company's  and  the
Restaurant's liabilities in consideration for 75,000,000 nil coupon unsecured 2012 convertible  loan  notes
("Loan  Notes") which on full conversion would equate to 75,000,000 ordinary shares of 0.8p in Cantina.  In
the  event  of any conversion of these Loan Notes, and consequentially, RSV's shareholding increases  above
29.9%,  further  conversion  of shares will be subject to Takeover Panel approval.  Under  Rule  9  of  the
Takeover Code, RSV will have to make a mandatory offer for the remaining shares in the Company, apply for a
dispensation from the Takeover Panel or not exercise its right to further shares in the Company unless  its
shareholding remains under 29.9%.

As  part of this disposal and debt settlement, the Directors and Company Secretary will be issued 5,000,000
ordinary  shares  at 0.8p per share in full and final settlement of their outstanding fees.  Loans  due  to
Directors  and  the  Company Secretary totalling £84,590, will be settled through the issue  of  10,573,750
shares in Cantina.  In addition, 1,250,000 shares will be issued at par as part of a settlement package for
outstanding professional fees.

A Circular will be issued to shareholders very shortly to explain the above transaction in more detail.  In
addition a General Meeting of the Company will be convened to approve the issue of the  Convertible  Loan
Notes,  the  transactions covered by this Announcement and also to advise shareholders of the future  plans
for the Company.

The Directors of the issuer accept responsibility for this announcement.

                                                  --END--


Contacts:

Cantina Augusto plc

Adriano Bernabei                            Tel: 01926 888 302



Rivington Street Corporate Finance

Heena Karani                                Tel: 020 7562 3393

Contact Information

  • Cantina Augusto plc