Tanfield Group PLC Snorkel Investment Update (3723N)
19 Mayo 2020 - 06:35AM
UK Regulatory
TIDMTAN
RNS Number : 3723N
Tanfield Group PLC
19 May 2020
The information contained within this announcement is deemed by
the Company to constitute inside information under the Market Abuse
Regulation (EU) No. 596/2014. Upon the publication of this
announcement via a Regulatory Information Service ("RIS"), this
inside information is now considered to be in the public domain
Tanfield Group Plc
("Tanfield" or the "Company")
Snorkel Investment Update
The Board of Tanfield (the "Board") is updating the market on
its investment in Snorkel International Holdings LLC
("Snorkel").
Investment Background
-- Tanfield is a 49% shareholder in the equity of Snorkel
following the joint venture between the Company and Xtreme
Manufacturing LLC ("Xtreme") (the "Contemplated Transaction"), a
company owned by Don Ahern of Ahern Rentals Inc, relating to
Snorkel, in October 2013 .
-- The Snorkel investment is valued at GBP19.1m. The outcome of
the proceedings referenced below could have an impact on this
valuation.
-- In November 2018 the Company announced it had received a call
option notice over its interest in Snorkel which the Board rejected
as being invalid. On 22 October 2019, the Company announced that it
had received a Summons and Complaint, filed in Nevada (the "US
Proceedings"), relating to the purported call option notice.
-- On 24 October 2019, the Company announced it had become
necessary to issue and serve a claim in the English High Court
against Ward Hadaway, the solicitor acting for the Company in 2013
(the "UK Proceedings").
Business Update
On 12 November 2019, the Board provided an update on the Snorkel
management account information for the 9 months ending 30 September
2019 which, among other things, saw Snorkel sales for the 9-month
period increase to $169.5m from $152.7m for the same period in
2018. The Company has not yet received the Snorkel management
account information for the quarter ending 31 December 2019
(Snorkel's financial year end) or the quarter ending 31 March 2020
and therefore the Board is unable to provide a further update on
Snorkel at this time. The Board remains hopeful that the
information will soon be made available by Snorkel but adds that
the Company reserves its rights under the contractual agreements
should it be necessary to pursue the provision of such information
through legal means .
On 30 March 2020, we reported that the Company had filed an
application for a stay in the UK Proceedings, pending the outcome
of the US Proceedings. That application has been refused and the UK
Proceedings will continue to progress with a trial scheduled to
take place between July 2021 and October 2021. As a result of the
UK Proceedings continuing to progress, the Board is reassessing the
Company's longer-term funding requirements, in addition to the
GBP500,000 loan note currently subscribed to, as announced on 30
March 2020, and expects to provide further updates to the market
over the next few months.
The US Proceedings continue to progress as outlined in the
update on 3 April 2020. The Board continues to seek advice
throughout and will provide further updates to shareholders as and
when appropriate.
For further information:
Tanfield Group Plc 020 7220 1666
Daryn Robinson
WH Ireland Limited - Nominated Advisor / Broker
James Joyce / Lydia Zychowska 020 7220 1666
This information is provided by RNS, the news service of the
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END
UPDSFLFFUESSEDI
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May 19, 2020 07:35 ET (11:35 GMT)
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