Mutual Termination of Purchase Agreement for New Head Office
Sydney, Mar 31, 2016 AEST (ABN Newswire) - Traditional Therapy Clinics Limited (ASX:TTC) outlined in its Replacement Prospectus (dated 30 June 2015) that it was constructing a new head office facility in Chongqing, China, which was due to be handed over at completion, expected to be on or before 31 December 2015.
The developer of the new head office notified TTC of a delay to the handover date, pending the issue of final compliance certificates from the Chinese government and on 31 December 2015, TTC advised the market that it expected handover of its newly constructed head office to take place before 31 March 2016, by which time the compliance certificates would have been issued.
TTC advises that it has decided not to go forward with the purchase of the new head office building and has successfully negotiated a mutual termination of the property purchase agreement. The developer has agreed to refund TTC, in full, the purchase money paid to date (RMB 128 million which equates to AUD 27.3 million using an exchange rate of 4.681) in four instalments by 31 December 2016.
TTC is actively exploring other options for a new head office. The current head office in Chongqing continues to be fully operational.
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About Traditional Therapy Clinics Ltd
Traditional Therapy Clinics Limited (ASX:TTC) is a franchisor and the owner of one of the largest chains (by number of clinics) of traditional therapeutic health and wellness clinics in China. It currently has 343 franchised clinics and 35 owned clinics in operation. It is a well established business with a strong growth profile, employing a repeatable and scalable business model.
TTC has a highly recognised and respected brand, having received the prestigious Chinese Well-Known Trademark designation from the State Administration for Industry and Commerce. It operates within a strongly regulated industry sector of significant scale, which offers opportunity for further growth.
TTC is an ASX listed company employing around 1,000 staff across 27 of the 33 administrative divisions in China. More information is available at https://www.ttc-ltd.com/