Dolphin Capital Investors Ltd on Tuesday said that its former investment manager has issued a claim against the company in England’s High Court.
In March, the London-based investor in high-end resort developments in the eastern Mediterranean said it had terminated its 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.’
On Tuesday, the company said that DCP has now filed a claim against Dolphin Capital Investors, alleging ‘repudiatory breach of contract by the company in relation to the termination by the company of the prior investment management agreement.’
‘The company considers the claim to be opportunistic and without merit and will be defending the claim vigorously and is preparing its own counterclaim,’ Dolphin Capital Investors said.
Shares in Dolphin Capital Investors were down 1.3% to 3.80 pence each in London on Tuesday afternoon.
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