Minoan Group has released details of plans to raise £200,000 through the issue of new shares, along with news about the reorganisation of funding arrangements.

The AIM-listed company has outline planning permission to build a hotel and villa complex in Crete.

In 2018, it sold its Scottish agency Stewart Travel in order to concentrate on developing the luxury resort.

Today it announced a reorganisation of an existing £1.1 million loan, which is subject to the approval of the shareholders at a general meeting to be held on August 6, as well as the issue of shares to raise £200,000.

It said the arrangements will strengthen the company’s balance sheet and make it easier for the company to attract external investment.

The board has also taken “significant action” in reducing ongoing running costs, including directors deferring or foregoing fees.

It said in a statement: “Following the reorganisation of the loan, the company will be better placed to manage its ongoing working capital requirements and will be on a more stable footing.

“Lockdown has delayed more detailed interactions with potential joint venturers and partners, especially in being able to hold face-to-face meetings and organising any site visits.”

Minoan will publish its interim results for the six months to 30 April 2020 by the end of August.

More: Minoan reveals loss on sale of Stewart Travel