TANFIELD GROUP PLC

Legal Proceedings Report • Oct 22, 2019

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RNS Number : 7556Q

Tanfield Group PLC

22 October 2019

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").

Business Update

Tanfield is a 49% shareholder in the equity of Snorkel following the joint venture between Tanfield and Xtreme Manufacturing LLC ("Xtreme"), a Company owned by Don Ahern of Ahern Rentals Inc ("Ahern"), relating to Snorkel, in October 2013.

As reported on 22 November 2018, SKL Holdings LLC ("SKL"), a Company owned by Xtreme, purported to exercise a call option for the Company's membership interest in Snorkel for an option price of $0 (nil) as well as purporting that payment of the priority amount and preferred return (collectively the "Preferred Interest") is not required.  As stated on 22 November 2018, and which remains to be the position, the Board does not agree with this statement and rejects the validity of the purported call option notice. 

The Board has sought to resolve the dispute amicably, however it has now received a copy of a Summons and Complaint, filed in the District Court, Clark County, Nevada, in which Snorkel and SKL seek to bring a claim against Tanfield in which they allege the Company has refused to comply with its contractual obligations in relation to the purported call option correspondence mentioned above. 

The Board of Tanfield continues to seek advice and will vigorously defend its position as well as providing 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

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