5 Sep 2016 08:00
B.S.D. CROWN LTD - Company Update Following Letter Of IntentB.S.D. CROWN LTD - Company Update Following Letter Of Intent
PR Newswire
London, September 5
BSD Crown Ltd. (LSE: BSD)
(the “Company”)
Company Update Following Letter Of Intent
Ramat Gan, Israel, 05 September 2016
The Company wishes to update the market on recent developments in relation to a cash deposit the total amount of approx. US$ 2.2M that was transferred to ALKO R Capta LLP (the "Trustee") in two tranches of US$ 703,000 and US$ 1,500,000 on 27 August 2014 and 2 October 2014 respectively.
The funds were transferred to the Trustee as an advance payment in relation to the proposed purchase by the Company of certain car dealerships in the United States of America following the Company signing a non-binding letter of intent with BP Auto Group LLC and Advantage Nissan LLC . The transaction was never consummated. Consequently the Company demanded the return of the deposit.
When the deposit was not returned immediately, the Company instructed a US law firm to handle the matter in order to retrieve the funds. The Trustee has stopped responding to correspondence from the Company’s US lawyers. As a result the Board of Directors has decided to pursue all courses of action available to it in order to seek the return of the deposit.
The company will provide an update in due course.
Gregory Gurtovoy, chairman of the board: office@bsd-c.com