Last checked at 24 Oct 2019 14:44
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")
Snorkel Investment Update
The Board of Tanfield (the "Board") is updating the market regarding legal proceedings that have recently been served on Ward Hadaway, the Company's former solicitor, in relation to the firm's role in the transfer of Tanfield's Powered Access Division to Snorkel International Holdings LLC ("Snorkel") (the "Joint Venture") in October 2013.
Following the Joint Venture between Tanfield and Xtreme Manufacturing LLC ("Xtreme"), a company owned by Don Ahern of Ahern Rentals Inc ("Ahern"), Tanfield became a 49% shareholder in the equity of Snorkel.
As reported in the Snorkel Investment Update on 22 October 2019, Snorkel and SKL Holdings LLC ("SKL"), the 51% shareholder in Snorkel, have brought a claim against Tanfield in Nevada in which they allege that the Company has refused to comply with its contractual obligations relating to a purported call option which sought to acquire the Company's membership interest in Snorkel for an option price of $0 (nil) as well as purporting that payment of the priority amount and preferred return (collectively the "Preferred Interest") is not required (the "US Litigation").
As a result of the issues arising from the US Litigation, Tanfield has been seeking to preserve its position against Ward Hadaway as, depending on the outcome of the US Litigation, the Company may need to hold the firm to account for its role in and/or advice to Tanfield in relation to the Joint Venture transfer. Due to time limitation issues, and because a suitable Standstill Agreement which would have fully protected the Company could not be agreed, it became necessary for the Company to issue and serve a claim against Ward Hadaway in the English High Court in order to ensure that the Company's rights were fully protected pending the outcome of the US Litigation. It is the intention of the Board to seek a stay of the claim, pending the outcome of the US Litigation, as the outcome of that litigation will have a direct and material impact on the Company's claim, including the quantum of the claim.
At this stage it is unknown if (and when) a stay will be obtained, but the Board of Tanfield continues to seek advice and will vigorously protect its position, if necessary, and will provide further updates 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