Dolphin Capital Investors Ltd on Monday said it has terminated the contract with its investment manager, effective immediately, after discovering what it called a ‘repudiatory breach of contract’.
The London-based investor in high-end resort developments in the eastern Mediterranean said it ended the investment management agreement with Dolphin Capital Partners Ltd. It had originally entered the agreement in December 1, 2021.
Dolphin Capital Investors also removed Miltos Kambourides as a board director. Kambourides is the co-founder & managing partner of DCP.
Dolphin Capital Investors said it learned that DCP ‘entered into an undisclosed option agreement with the purchaser of the Amanzoe resort in Porto Heli, Greece at the same time that the company sold its interest in the resort’ back in 2018. It said the option agreement entitled DCP to buy an additional 15% of DolphinCI Fourteen Ltd, the special purpose vehicle holding the Amanzoe resort. The undisclosed option agreement was additional to a separate agreement that had been disclosed for DCP to acquire 15% of DolphinCI Fourteen.
The undisclosed DCP agreement put Dolphin Capital Investors in breach of the listing rules of AIM, the company explained, and it will be self-reporting the breach to the London exchange.
‘The company is seeking to pursue all legal options to recover the value arising from the undisclosed option agreement that is the company’s property,’ Dolphin Capital Investors said. ‘The directors believe that this value could be material in the context of the size of the company, but at this time do not have enough information to put a precise quantum on this.’
Dolphin Capital Investors said it will put in place additional resources to enable it to self-manage its assets, and it has no current intention to appoint a new investment manager.
The dispute with the company’s investment manager adds to recent turmoil at Dolphin Capital Investors. Last month, Martin Adams, who had been board chair since June 30, 2021, resigned as a director with immediate effect, replaced by Sean Hurst.
Dolphin Capital shares were untraded on Monday, closing on Friday at 3.85 pence. The stock is up about 7% over the past 12 months.
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