Fox Marble Holdings (LON: FOX), the AIM listed company focused on marble quarrying and finishing in Kosovo and the Balkans region has today provided the market with an operational and financial update ahead of its Annual General Meeting being held this morning at 11 am at CMS’s offices at 78 Cannon St London EC4N 6AF. Additionally, the Company provides an update to the announcement dated 4 April 2019 regarding the conditional acquisition of Green Power Sh.p.k and Scope Sh.p.k..
Sales and Marketing update:
· As previously announced on 17 June 2019, Fox Marble has received an order for 1,850 tons of Illirico Selene (the silver grey marble) from an existing customer. The order is notable because it consists not only of the higher quality large blocks of stone but also large quantities of small and semi blocks which constitute a lesser grade of block. This has the additional effect of clearing out old stock extracted some years ago and freeing up space in the quarry to further extend the quarrying area and reach additional resources of good quality stone.
· On 5 June 2019, Fox Marble announced the confirmation of its biggest single order for its prized Alexandrian White marble. This order has been placed by the Swaminarayan Hindu religious order who are building a temple in Abu Dhabi on land donated by the Royal family of the UAE. Construction of this monument is due to commence shortly. Fox Marble will be providing bespoke, cut-to-size marble, varying in size from small blocks to large beams which will be shipped by the temple to India to first be hand carved and then shipped to the temple site. The schedule for the first of these shipments has been received. Fox Marble has received a minimum firm commitment for this material to be supplied during 2019 and 2020. The minimum value of this order will be $2.4m and Fox has received the first good faith deposit of $100,000 by way of confirmation.
Financial:
· Sales for the period to 30 May 2019 are €791k (2018: €413k) Production for the period to 30 May was 7,532 tonnes (2018: 4,079 tonnes).
· The cash balance as at 26 June 2019 is €0.8 million.
Updated on on Acquisition of Green Power and Scope:
· On 4 April 2019 the Company announced the conditional acquisitions of Green Power, the licence holder of the Maleshevë quarry, and Scope, a company through which Fox Marble has entered into two hire purchase agreements.
· As previously stated, the Acquisitions are conditional, inter alia, on shareholders approving certain resolutions at the forthcoming Annual General Meeting (“AGM”) of the Company on 26 June 2019, relating to authorities to issue new ordinary shares in the Company.
· The Company announces that it has now received notification from the legal representatives of Green Power and Scope, challenging the enforceability of the acquisition agreements relating to the proposed Acquisitions.
· The Company is seeking advice from its legal advisers in respect of these claims, which they believe to be wholly unfounded. An update will be made to the market in due course, and the Company will seek shareholder approval of the Resolutions at the forthcoming AGM.
Other:
· On 11 June 2019 Fox Marble announced the appointment of Optiva Securities as Joint Broker to the Company with immediate effect.
Chris Gilbert, Fox Marble Holdings CEO, commented:
“We have had a positive start for the year with sales developing well, and a number of major contracts being signed. We look forward to providing a half year update in July. A major focus for the year is to expand our sales base beyond our most popular materials, Illirico Selene and Alexandrian White, to encompass all the Fox products, and to further develop our market for material processed at our factory.”
