Challenger Acquisitions Limited Company Update (6452U)
October 26 2017 - 1:00AM
UK Regulatory
TIDMCHAL
RNS Number : 6452U
Challenger Acquisitions Limited
26 October 2017
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR
INDIRECTLY, WITHIN, INTO OR IN THE UNITED STATES, AUSTRALIA, CANADA
OR JAPAN.
For Immediate Release
26 October 2017
Challenger Acquisitions Limited
("Challenger" or the "Company")
Company Update
Challenger Acquisitions Limited (LSE: CHAL) announces an update
on the New York Wheel Project ("NYW Project") in which the Company
has an equity stake (US$3 million), and the new projects the Board
is currently evaluating which Challenger believes will offer
strategic growth opportunities for the Company.
New York Wheel Project
As previously announced, due to a contractual dispute with the
wheel erectors, New York Wheel has terminated its contract and is
in advanced negotiations with American Bridge Company, a very
experienced engineering and construction firm that has completed a
significant proportion of the world's large bridges, marine
installations, and other complex structures, including the Giant
Observation Wheel in Las Vegas in 2014 (see
www.americanbridge.net). A court hearing is scheduled for 26
October 2017 in New York where the New York Wheel and the former
wheel contractor will discuss the transition matters related to the
extensive work done by the various subcontractors for the NYW
Project. Further updates will be made as and when information
becomes available, however the Company remains confident that full
construction of the NYW Project will recommence in the
near-term.
Whilst this contractual dispute has caused delays in the
construction of the 630ft Giant Observation Wheel, significant
progress has been made on the 75,000 sq ft terminal and retail
building terminal which will sit alongside the Giant Observation
Wheel and a 950 space parking garage and a 5,000-person capacity
green roof for events. Work on the major components of the Giant
Observation Wheel such as the rim, cables, spindle, drive towers,
capsules and control cabinets are also still in progress.
New Opportunities
In line with the Company's strategy to acquire or develop
opportunities in the leisure and entertainment sectors which
complement its investment in the NYW Project, the Challenger Board
has been busy evaluating a number of projects the Company believes
has the potential to offer near and long term revenue generation
prospects. Three opportunities have been declined over the past two
quarters as following due diligence processes the Board deemed the
projects not to be a proper fit for Challenger.
However, due diligence continues on five new potential projects
that have been identified and targeted in 2017, and updates will be
made to the market with regards to these opportunities as and when
appropriate, although there is no certainty that any will proceed.
Challenger's role may range from actively investing to
partnering/operating in these businesses.
Mark Gustafson, Challenger's Chief Executive Officer said,
"Following the restructuring process for Challenger since our
disposition of Starneth we have been avidly evaluating projects
which we believe will create near-term revenue and complement our
interest in the NYW Project. This is not a simple or quick process,
however we are very encouraged by recent developments with several
of the new opportunities. Meanwhile, we look forward to the
recommencement of full construction of the NYW Project, and
anticipate being able to announce further updates in the near term.
I would like to thank our shareholders for their patience during
this time and re-emphasise that we are working hard to find the
right opportunity to deliver the utmost shareholder value."
This announcement contains inside information.
**ENDS**
For more information visit www.challengeracquisitions.com or
enquire to:
Challenger Acquisitions Limited
Mark Gustafson +1 604 454 8677
St Brides Partners Ltd (PR)
+44 (0) 20 7236
Lottie Wadham, Charlotte Page 1177
This information is provided by RNS
The company news service from the London Stock Exchange
END
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