Ecovista Plc

January 29, 2014 10:02 ET

Statement re provision of loan

Ecovista PLC

("Ecovista" or the "Company")

Statement re provision of loan

In July 2012 we announced that the Company had entered into a Call Option Agreement which if
exercised by the 31st December 2015 gives the Company the right to purchase the entire issued share
capital of Cignella Srl ("Cignella").

The Call Option Agreement stated that on exercise of the option Ecovista will pay the Cignella shareholders
a total consideration of EUR 5 million plus the payment of the existing bank loans.

The  Company  have  now  agreed to lend Cignella GBP 150,000 by way of an interest free  loan  for  working
capital.  The  loan will be interest free and will be repaid in full by a date which is 12 calendar  months
after the receipt of the loan by Cignella or, at the written request of the Company, be set off against the
consideration payment due from the Company under the Call Option Agreement if the option is exercised.

In  consideration of providing the loan and as a result of the reduction of the assets Cignella  since  the
Call  Option Agreement was signed, as a result of the disposal of some of the properties, the consideration
payable  on the exercise of the option has been reduced to the sum of EUR 4.5m. Furthermore, if  there  are
any further disposals of properties, the consideration payable will be reduced again.

The  Cignella  Estate  (  is  an  "Eco  Village"  offering
exclusive  villa rentals powered by a state of the art geothermic system. Set in a striking position  on  a
hill  top overlooking the glorious southern Tuscan countryside this is a development of 18 villas over  the
200  acre  estate.  The Cignella Estate is situated some 20 miles south-east of Siena in southern  Tuscany,
close  to  the  wine  country of Chianti and Brunello and within half an hour of the magnificent  towns  of
Siena, Cortona and Montepulciano.

Due diligence is still being carried out however  an initial independent valuation shows a value of the
estate in excess of EUR 10.5 million.

The board believe this is a very exciting transaction for our shareholders and are confident in the quality
this project, which they hope will in the long term, significantly enhance shareholder value.

The Directors of the Company accept responsibility for this announcement.

Luca Tenuta
Tel: 07900 242 769

Nick Michaels
Alfred Henry Corporate Finance Limited
Tel:  +44 (0) 20 7251 3762

Contact Information

  • Ecovista Plc