It has been a tough couple of years for the UKAP Group and that has been keenly felt by our shareholders and investors. Funding has been a challenge across leisure and not just for UKAP. We have persevered with a commitment to deliver this business despite the challenges that has brought.
What is the current situation for the group?
In October 2023 UKAP Investments Limited, a wholly owned subsidiary of UKAP Holdings Limited, accepted settlement of the UKAP corporate bond in the form of copper backed digital tokens. At the time of settlement these were valued at approx. £55m GBP. They are now valued at approx. £63.5m. These were accepted on the basis that there would be immediately available liquidity so that we could start selling the assets as we required to fund the business activities.
Fast forward fifteen months and only now are we able to start selling with an agreed £5m expected to be sold over the next 6-10 weeks. Once this tranche has successfully been sold, we will be agreeing periodic sales.
The group does have creditors, and we are in communication with them or their appointed representatives to ensure those liabilities are cleared alongside the investment to progress the business.
What can we expect in H1 2025?
The priority is to drawdown the investment that has been secured for the group so we can move forward with our plans across both property and leisure. Initial funds will be split between clearing liabilities and direct investments into the leisure operators we have contracts with; direct ownership of; or opportunities that we have remained in communication with over the last 24 months. The primary drive is to build a portfolio of increasing revenue generating businesses – with the aim to build the share value.
Our shareholders have suffered with not having a secondary market for the shares they have acquired. The inability for UK shareholders to trade on the Berlin Stock Exchange led the company to forge a new route and this is to admit the shares to Asset Match. The capital structure of the holding company is being simplified so there is only one share class – Ordinary Shares. The changes will be implemented over the next three months with a new target date of admission to Asset Match on or before 30th June 2025. To be clear as we know some shareholders have been in contact with Asset Match, the admission is not finalised as it is subject to the capital structure changes being completed. We know that Asset Match continues to grow and that there have been very successful listings on their marketplace with regular new admissions only enhancing the opportunity for UKAP shareholders.
Other News
The group retains on operating lease at Stanley Park Golf Course. The option we hold expires in June 2027 and it remains the intention to take up the option with the development of the golf operations at the course. This requires an investment of at least £1m GBP which will result in a long-term lease likely to be 125 to 175 years. Talks are ongoing with a development partner.
The Golf Venue continues to offer a wide range of golf and golf related leisure services in Croydon. (www.thegolfvenue.co.uk). Investment in marketing, equipment and infrastructure, along with negotiating better lease terms, we are confident that this will secure the future of the business for years to come.
UKAP will be launching a new website and will be increasing the communication through social media channels as the investment is realised. We will have a dedicated investor section and will be highlighting the leisure operators that we expect to deliver the value the shareholders deserve for the patience and commitment that they have shown over the years.
In the coming weeks, we will ensure that there are regular updates on the progress we are making across the business and with funding. We hope that 2025 will see UKAP leap forward in its development and value for shareholders.