Sprue Aegis plc DA Termination Notice and Update re final results (6910I)
23 March 2018 - 6:01PM
UK Regulatory
TIDMSPRP
RNS Number : 6910I
Sprue Aegis plc
23 March 2018
23 March 2018
Sprue Aegis plc
("Sprue" or the "Company")
DA Termination Notice and Update re final results
Sprue (AIM: SPRP), one of Europe's leading developers and
suppliers of home safety products, announces that it received
written notice ("Termination for Breach Notice") on 22 March 2018
from BRK Brands, Inc. in which it is alleged, inter alia, that:
- the Company is in breach of certain provisions (relating,
inter alia, to the Company's rights to use certain BRK trademarks)
of the distribution agreement entered into between Sprue and BRK
Brands Europe Limited ("BRK") dated 10 April 2010 which was
extended by both parties for a further three years from 1 April
2015 ("Distribution Agreement") and that this alleged breach
severely damages BRK; and
- the breach is not curable and as such BRK is terminating the
Distribution Agreement effective as of 22 March 2018 and that BRK
shall not be purchasing any stocks of unsold products.
The Company will be carrying out an assessment of the value of
the stocks of unsold products which BRK has stated, in the
Termination for Breach Notice, it is not going to purchase. A
further announcement will be made in due course.
The Company announced on 31 March 2017 that it had received 12
months' written notice to terminate the Distribution Agreement such
that the Distribution Agreement would terminate on 31 March 2018.
The Company also announced on 31 March 2017 that expiry of the 12
months' notice period on the Distribution Agreement would end
Sprue's obligation to pay the fixed BRK annual distribution fee of
GBP2.9m and its right to distribute BRK's products and brands in
Europe, both with effect from 31 March 2018.
The Company is taking legal advice with regard to the
Termination for Breach Notice and the allegations made by BRK and a
further announcement will be made in due course.
On 30 January 2018, the Company announced that it expected to
announce its audited final results for the year ended 31 December
2017 in late March 2018. In light of the Termination for Breach
Notice, the audited final results for the year ended 31 December
2017 will not now be announced in late March 2018. A further
announcement will be made in due course.
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulation (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
For further information, please contact:
Sprue Aegis plc 02477 717700
Graham Whitworth, Executive
Chairman
Neil Smith, Group Chief Executive
Stockdale Securities 0207 601 6100
Tom Griffiths
Vigo Communications 020 7830 9700
Jeremy Garcia / Fiona Henson
Notes to Editors
About Sprue Aegis plc
Sprue's mission is to protect, save and improve our customers'
lives by making innovative, leading edge technology simple and
accessible. Sprue is one of the market leaders in the European home
safety products market and launched its own connected homes product
proposition at the end of 2016.
Sprue's principal products are smoke alarms, CO alarms and
accessories. The Group has an extensive portfolio of patented
intellectual property in Europe, the US and other selected
territories. Products are sold under Sprue's leading brands of
FireAngel, FireAngel Pro, FireAngel Spec, AngelEye and FireAngel
Connect.
For further product information, please visit: www.sprue.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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