Business
Loan Note Instrument and Snorkel Investment Update
Loan Note Instrument and Snorkel Investment Update.
About this update from Tanfield Group Plc
[{"type":"text","content":"\n \n \n RNS Number : 9561H\n Tanfield Group PLC\n 30 March 2020\n \n \n \n \n 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\n \n \n \n \n \n \n \n \n Tanfield Group Plc\n \n \n (\"Tanfield\" or the \"Company\")\n \n \n \n \n \n Loan Note Instrument and Snorkel Investment Update\n \n \n \n \n The Board of Tanfield (the \"Board\") is pleased to announce that the Company has put in place a loan note instrument (the \"Loan\") of up to £700,000. The Loan will be used to provide funding for the \n ongoing legal proceedings relating to its interest in Snorkel International Holdings LLC (\"Snorkel\") and other day to day costs. \n \n \n \n \n \n The Loan is unsecured, carries annual interest of 10% which is to accrue and is repayable on the earlier of (i) 28 February 2025 or (ii) receipt of sufficient funds relating to either the \n legal proceedings brought against the Company by its 51% joint venture partner SKL Holdings LLC (\"SKL\") and Snorkel (the \"US Proceedings\") or the proceedings against Ward Hadaway as reported on 24 October 2019 (the \"UK Proceedings\").\n \n \n \n \n \n Several existing shareholders have subscribed to the Loan and have collectively committed to provide a minimum of £500,000. The Loan constitutes a related party transaction under Rule 13 of the AIM Rules as a result of OTK Holding A/S and Zoar Invest Aps, which each hold approximately 14% of the issued shares of the Company, both subscribing £180,000 to the Loan. \n The Directors of the Company, having consulted with WH Ireland Limited, the Company's nominated adviser, consider the terms of the transaction to be fair and reasonable.\n \n \n \n \n \n Snorkel Investment Update\n \n \n \n \n \n The Board is updating the market regarding the US Proceedings and the UK Proceedings. \n \n \n \n \n \n As reported on 22 October 2019, Snorkel and SKL filed a \n Summons and Complaint in the District Court, Clark County, Nevada\n where they allege that, pursuant to their issuing a call option, they can a...