The Convenience Shop (Holding) P.L.C. 5% – Bond Issue

The Convenience Shop (Holding) P.L.C. 5% Unsecured Callable Bonds 2026-2029

The Convenience Shop (Holding) P.L.C. has announced the issuance of €5,000,000 5% Unsecured Bonds callable 2026-2029 of a nominal value of €100 per Bond which shall be issued at par.

If you wish to apply for these bonds kindly follow the guidance at the bottom of this news item or contact us on +25 688 688 or [email protected] or via live chat on ww.cc.com.mt for more information.

BUSINESS OVERVIEW

Originally established in 2009 with its first outlet in Zebbug, The Convenience Shop has today become a household name and leading brand in Malta synonymous with an extensive choice of products at affordable prices.

The Convenience Shop continues to gain market share by adding value to its customers through offering the right product, at the right price and in the right place through its strategically located outlets across Malta and with extended hours of one-stop shopping.

COMPANY OVERVIEW

Following on from the above, the Issuer is a special purpose vehicle whose principal object is to act as a holding company for The Convenience Shop (Holding) P.L.C. Group.

The Issuer was registered and incorporated on the 26th July 2018 as the parent company and finance arm of the Group. As the Issuer does not carry out any trading activities itself, it is economically dependent on the business prospects of the Group, the core operation of which is the operation of a chain of mini-market stores under The Convenience Shop brand in Malta with a current shop count of 28 owned shops and 30 franchised shops.

USE OF PROCEEDS

The proceeds from the Bond Issue (less bond issue related-expenses) shall be used for the following purposes:

·an amount of €2,705,000 will be used for the acquisition of the going concern business transfers as follows:

§ €1,040,000 will be used to acquire minority stakes previously held by third parties in the own shop operations.

§ €1,540,000 will be used to repay balances due to shareholders who reduced their effective shareholding in the new Group due to the restructuring that included buying out minority shareholders.

§ Costs amounting to €125,000 will be allocated to cover additional restructuring costs.

· An amount of €1,500,000 will be used to finance new shop openings over the coming years and include acquisition and fit out costs. The Group is projecting an average of two (2) new store openings per annum as from FY 2019 up to FY2027 resulting in a combined (i.e. franchised and own stores) shop presence of one hundred (100) stores by Maturity of the Bonds.

· An amount of €695,000 will be retained for general corporate funding purposes

APPLICATION HAS BEEN MADE TO THE EXCHANGE FOR THE BONDS TO BE ADMITTED TO TRADING ON PROSPECTS MTF. PROSPECTS IS A MARKET DESIGNED PRIMARILY FOR EMERGING AND SMALLER COMPANIES TO WHICH A HIGHER INVESTMENT RISK TENDS TO BE ATTACHED. PROSPECTS MTF SECURITIES ARE NOT ADMITTED TO THE OFFICIAL LIST OF THE MALTA STOCK EXCHANGE.

Investors are strongly advised to carefully read the risk factors in the Company Admission Document.

HOW TO REGISTER TO BUY BONDS?

Orders will be accepted from the 13th March 2019.

All orders must be submitted by not later than the 22nd of March 2019 (Closing date). The offer may close at an earlier date without prior notice in case of over-subscription.

Applications must be for a minimum value of €2,000 and multiples of €100.

A copy of the Company Admission Document is available HERE

Orders may be placed by reaching out to your Financial Advisor or contacting us on +356 25 688 688, via email on [email protected], or via live chat on www.cc.com.mt.

Calamatta Cuschieri Investment Services Ltd is acting as Corporate Advisor, Placement Agent and Manager for this bond issue.