BSD.L Regulatory News (BSD)

B.S.D. CROWN LTD - Company Update

PR Newswire

London, June 23

BSD Crown Ltd. (LSE: BSD)

(the “Company”)

Company Update

Ramat Gan, 23 June 2016

Further to the announcements dated 1 June 2016 and 10 June 2016, regarding the publication of the Company's Notice of Annual and Extraordinary General Meeting (the “Notice”) convening such a meeting for 9.30am (BST) on July 5th, 2016, (the "Meeting"), the Company hereby announces that on 21 June 2016, the Company's Israeli lawyers received a copy of a motion against the Company and its Directors (the "Motion"), which had been filed with the Financial Department of the Israeli District Court in Tel Aviv (the "Court") by a shareholder of the Company, Zvi V & Co Ltd. (the "Petitioner").

In the Motion, the Petitioner has asked the Court to declare that the Company's affairs are being managed in a prejudicial way and that the Directors have breached their duties under Israeli Companies law. The Petitioner has also requested the Court to make an order:

(1) preventing the Company and its directors from proposing the appointment of the new directors and the re-election of current directors at the Meeting, in the manner set out in the Notice or otherwise, and preventing the Directors from voting on such matters at the Meeting, in each case until a period of 21 days from the day on which the Company and its Directors provide all shareholders with detailed clarification with respect to the Company’s financial position;

(2) preventing the election of Mrs. Iris Even Tov, Mrs. Neomi Enoch and Mr. Gil Leidner (who are proposed by the Company to be elected as directors of the Company and none of whom have any prior connection to the Company, the Directors or the controlling shareholder);

(3) preventing the Company and its Directors from entering into any contract or agreement, arrangement or undertaking any other transaction regarding the Company's assets; and

(4) appointing a special executor to investigate the financial position of the Company.

The Petitioner has also filed a request for an interim order for the matters set out in 1-4 above pending a formal decision by the Court.

The Board rejects all claims made by the Petitioner in the Motion and has until 23 June 2016 to respond to the Court (with respect to the request for the temporary injunction). A hearing regarding the Motion is scheduled to be held on 27 June 2016.

The Company will provide a further update in due course.

Enquiries: Yossi Schneorson, CEO: yossi@bsd-c.com