TUNG.L Regulatory News (TUNG)

The Company notes the recent press speculation regarding a proposal for the requisition of a general meeting to invoke changes of certain members of the Board of Tungsten.

While no requisition of a general meeting has been received, the Company confirms that Odey Asset Management LLP has indicated that it intends to propose resolutions to seek the removal of certain directors of the Board of the Company, being Nicholas Parker (Chairman), Richard Hurwitz (Chief Executive Officer), Ian Wheeler (Non-Executive Director) and Davide Benello (Non-Executive Director) and the appointment of Tony Bromovsky and Duncan Goldie-Morrison to the Board of Tungsten. The Company is aware that Odey Asset Management LLP has received irrevocable undertakings from certain shareholders of the Company, being Disruptive Capital Investments Limited and other associates of Edi Truell, and Hadron Capital LLP, in support of Odey Asset Management LLP's proposed resolutions.

The Board regrets that this initiative has been taken at the moment that Tungsten has reached an inflection point. As announced on 4 June 2018, the Company narrowed EBITDA losses in FY18 to an expected £4.6m and reported monthly EBITDA breakeven during the first four months of the calendar year. Revenues for FY18 are expected to be £33.7m and adjusted operating expenses are expected to be £36.0m. This compares with revenues of £22.5m, adjusted operating expenses of £45.2m and EBITDA losses of £25.2m for FY15, the year immediately before Richard Hurwitz became Tungsten's CEO.

It is the Board's intention to enter into discussions with its shareholders regarding this matter. The Company will provide a further update in due course.