BSD.L Regulatory News (BSD)

B.S.D. Crown Ltd. - Company updates

PR Newswire

London, August 4

BSD Crown Ltd. (the “Company”) (LSE: BSD)Company updates

Ramat Gan, 4 August 2017

Further to the announcements dated May 17, 2016, and June 20, 2017, the Company hereby provides notice of recent developments pertaining to the Company’s deposit of funds with Meinl Bank Aktiengesellschaft (the “Deposit” and “Meinl”, respectively).

On June 16, 2017, the Company was notified by Meinl that a “default event” had occurred during May 2016 with respect to a loan taken by a Virgin Islands company by the name of Terminus Ventures Limited (“Terminus”) and that pursuant to such “default event” and a Custody and Pledge Agreement allegedly executed by the Company to secure Terminus’s loan, the Deposit became “redeemable” for the purpose of covering Terminus’s debt.

The Company hereby clarifies that it has never committed or pledged its Deposit to secure any third party debt, including the alleged debt of Terminus, nor did it ever enter into the alleged Custody and Pledge Agreement. Not only that, the Company received multiple documents and certificates from Meinl, indicating that the Deposit was free of any limitations or third party rights, and relied upon such documents and certificates. 

On June 20, 2017, the Company responded to Meinl’s June 16, 2017 notification and categorically rejected all of Meinl’s claims and arguments. On June 21, 2017, Meinl seized the Company’s Deposit.

On August 2, 2017, the Company issued to Meinl and its officers and directors a Notice before Taking Legal Action, in which it asserted that Meinl misappropriated the Company’s funds in gross violation of well-accepted banking procedures and its fiduciary duties, as well as the duties of its directors and officers. The Company further argued that a series of events supported by myriad evidence, implicates or associates Meinl in criminal felonies, including grand larceny, fraud and collusion to commit fraud. Meinl was required to immediately refund the Company the sum of USD $32,007,754.91, which were unlawfully expropriated from the Deposit. 

Enquiries: Joseph Williger, Active Chairman of the Board