Tanfield Group PLC Loan Note Instrument (5278U)
July 30 2020 - 1:00AM
UK Regulatory
TIDMTAN
RNS Number : 5278U
Tanfield Group PLC
30 July 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")
Loan Note Instrument
Background
-- Tanfield is a 49% shareholder in the equity of Snorkel
International Holdings LLC ("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 US and UK Proceedings referenced below could have an impact on
this valuation.
-- On 22 October 2019, the Company announced that it had
received a Summons and Complaint, filed in Nevada (the "US
Proceedings") by subsidiaries of Xtreme, relating to the
Contemplated Transaction.
-- 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 "UK Proceedings"), the solicitor acting
for the Company at the time of the Contemplated Transaction, in
order to fully protect the Company's rights pending the outcome of
the US Proceedings.
-- On 30 March 2020, the Company announced that it had put in
place a loan note instrument of up to GBP700,000, with GBP500,000
being subscribed to.
-- On 19 May 2020, the Company announced that the Board was
reassessing the longer-term funding requirements.
The Board of Tanfield (the "Board") is pleased to announce that
the Company has put in place a second loan note instrument (the
"Loan") of up to GBP1,000,000. The Loan will be used for the
purpose of providing the necessary funding for the ongoing US and
UK Proceedings and other day to day costs.
The Loan is unsecured, carries annual interest of 10% which is
to accrue and is repayable on the earlier of (i) 28 February 2025
or (ii) receipt of sufficient funds relating to either the US
Proceedings or the UK Proceedings.
A number of existing shareholders have subscribed to the Loan
and have collectively committed to provide an initial sum of
GBP500,000. The Loan constitutes a related party transaction under
Rule 13 of the AIM Rules as a result of OTK Holding A/S and Zoar
Invest Aps, which each hold approximately 14% of the issued shares
of the Company, subscribing GBP300,000 and GBP100,000 respectively
to the Loan. The Directors of the Company, having consulted with WH
Ireland Limited, the Company's nominated adviser, consider the
terms of the transaction to be fair and reasonable.
Following discussions with the existing shareholders, the Board
are of the opinion that further subscriptions to the Loan will take
place as necessary to ensure the Company can continue to protect
its investment in Snorkel.
As outlined in the update on 10 July 2020, both the US and UK
Proceedings are continuing to progress, with the Board continuing
to seek advice, and further updates will be provided 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
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
MSCPPURGMUPUGQB
(END) Dow Jones Newswires
July 30, 2020 02:00 ET (06:00 GMT)
Tanfield (LSE:TAN)
Historical Stock Chart
From Apr 2024 to May 2024
Tanfield (LSE:TAN)
Historical Stock Chart
From May 2023 to May 2024