Sprue Aegis Shares Fall As BRK Agreement Ended Due To Alleged Breaches

LONDON (Alliance News) - Shares in Sprue Aegis PLC lost a quarter of their value on Friday after the company said smoke alarms firm BRK Brands Inc has terminated the agreement between two on the grounds of Sprue Aegis being in breach of provisions of the agreement.

Shares in the home safety products developer fell 25% at 141.95 pence on Friday.

According to Sprue Aegis, BRK Brands said that the breach severely damages the company, and as it is not curable, it would terminate the agreement and not purchase any stocks of unsold products.

In April 2010, Sprue Aegis entered an agreement to exclusively distribute the products of BRK Brands Europe Ltd, which was extended for a further three years in April 2015.

Sprue Aegis had received a 12 months written notice at the end of March 2017 to terminate the agreement, as well as its obligation to pay the annual distribution fee of GBP2.9 million.

The company is currently assessing the value of the stocks of unsold products, and is seeking legal advice concerning the termination notice and the allegations made by BRK. As a result, Sprue Aegis said it will not be publishing its results for 2017 in late March.