Bagir (AIM: BAGR), a designer, creator and provider of innovative tailoring, provides an update with Shandong Ruyi’s proposed $16.5 million investment to acquire a 53.7% shareholding in Bagir (“Proposed Investment”), further details of which are contained in Bagir’s announcements of 3 September 2018,31 December 2018 and 13 February 2019.
The Company has not received the remaining cash payment of $13.2 million under the terms of the Proposed Investment as at 30 May 2019, the extended unconditional completion date as announced on 31 December 2018, and nor has Shandong Ruyi met other commercial commitments that had been agreed. Instead Shandong Ruyi has requested an extension of the unconditional completion date to 18 June 2019 in order to discuss some changes to the agreed terms. Whilst the Board consider Shandong Ruyi’s failure to complete the Proposed Investment as a fundamental breach of the Share Purchase Agreement entered into with Shandong Ruyi, the Board have agreed to this short extension due to the potential benefits that the strategic partnership might still have on the Company and its future prospects with all of Bagir’s rights reserved.
The Company will provide an update to shareholders in due course.