By Michael Susan
Tanfield Group PLC said on Thursday it had raised an additional 125,000 pounds ($167,600) from existing shareholders under a previously agreed loan, which will be used to pursue legal action against its investment in Snorkel International Holdings. LLC.
The London-listed investment firm – which is a 49% shareholder in Snorkel following its joint venture with Xtreme Manufacturing LLC – said it received £625,000 under the first loan, which was agreed in March 2020. A second loan for up to £1million was agreed in June.
The company said it may need an additional loan to continue protecting its investment in Snorkel, an aerial work platform company.
The agreed loan bears 10% annual interest, with a 20% prepayment premium and must be paid by February 28, 2025.
“The board believes that a successful outcome to either of the US and UK proceedings is a reasonable expectation, and the company will continue to vigorously defend and advance its position in both proceedings,” said he declared.
The company added that Snorkel’s investment is valued at £19.1m and both proceedings could impact that valuation.
Write to Michael Susin at [email protected]