2nd Jan 2025 08:44
(Alliance News) - Shares in Revolution Beauty Group PLC soared on Thursday after it settled a dispute with Chrysalis Investments Ltd.
The London-based cosmetics retailer said it had reached a "confidential settlement" with former shareholder Chrysalis, without any admission of liability by either party. It has agreed to pay Chrysalis a "non-material sum" which will "not have a material impact" on the company's financial and cash position.
Shares in Revolution Beauty soared 13% to 15.50 pence in London on Thursday morning. Chrysalis Investments fell 0.9% to 107.00p.
Chrysalis said under the agreement, Revolution Beauty has agreed to pay a "non-material sum, being less than 1% of the company's market capitalisation." On Thursday, Chrysalis had a market value of GBP613.3 million.
In February, Chrysalis said it had "potential claims" under the UK financial services & markets act against Revolution Beauty. In April, Chrysalis said it had issued legal claims for a total of GBP45.2 million against the firm.
Chrysalis bought into the AIM listing in July 2021, purchasing around GBP45 million worth of shares, and sold its holding in "late 2022" for roughly GBP5.7 million, so about GBP40 million off what it initially paid.
"The original share purchase was made on the basis that information provided to the company by Revolution prior to the company's purchase of the shares in Revolution, and during the period in which the shares were held prior to their sale, contained misstatements and material omissions," Chrysalis claimed at the time.
Revolution Beauty "strongly contested" the claims made by Chrysalis.
By Jeremy Cutler, Alliance News reporter
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