The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 ("MAR").

FORMATION GROUP PLC

('Formation' or the 'Company')

GBP10 million invested into Irish development sites

Formation is pleased to announce that it is investing the £10m raised by the Company in May 2019, through its subsidiary Market Equities Limited (‘Market Equities’), into a number of Irish property development sites.

The sites in Dublin, Limerick and Kildare, Ireland, are at various stages and are owned by companies previously wholly controlled by Zandra Holdings Limited, a substantial shareholder in the Company.

Pursuant to the transaction, Market Equities has acquired 100% interests in the development sites through the issue of shares to Zandra JV Limited (‘Zandra JV’), a company controlled by Zandra Holdings Limited.

Following the transaction, Market Equities will be owned 55% by Zandra JV and 45% by Formation. Market Equities has also acquired, for a nominal consideration, Formation’s previously dormant subsidiary, Formation Homes Ireland Limited, which will now be the main contractor for the developments.

Related-party Transaction

David Kennedy and Patrick Kennedy are directors of Market Equities Limited, Zandra Holdings Limited and Zandra JV Limited.

David Kennedy is the Chief Executive Officer and Patrick Kennedy is a Non-executive Director of Formation; therefore, the transaction described above constitutes a related party transaction pursuant to the NEX Exchange Growth Market Rules for Issuers. David Kennedy and Patrick Kennedy recused themselves from discussions pertaining to the transaction

The Directors of the Company accept responsibility for the contents of this announcement.

--ENDS--

Enquiries:

Formation Group plc
Noel O’Carroll - Director
Tel: +44 (0) 20 7920 7590
Peterhouse Capital Limited (Corporate Adviser)
Mark Anwyl
Tel: +44 (0) 20 7469 0934

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