Stock Market News
Sprue Aegis shares fall 28% as distribution termination heats up
Shares in home safety product manufacturer Sprue Aegis plummeted by almost 30% on Friday as the company's distribution agreement with Newell Brands has soured.
Sprue Aegis received a written notice from Newell's company BRK Brands on 22 March which alleged that Aegis had breached provisions of the distribution agreement relating to its use of BRK trademarks.
The letter from BRK Brands continued to state that the breach is "not curable" and that following immediate termination of the agreement it would not purchase any stocks of unsold products.
BRK Brands has been one of Sprue Aegis' main distribution outlets but BRK issued a 12 month notice of the agreement's termination on 31 March 2017, which BRK has evidently brought forward due to the alleged breach of terms.
Sprue Aegis is seeking legal advice concerning the termination and allegations against it.
The termination has resulted in the delay of Sprue Aegis' release of its final results for the year ended 31 December, which will no longer be provided this month.
The smoke detector manufacturer did note, however, that it will no longer be obligated to pay a fixed annual distribution fee of £2.9m to BRK Brands and that it will now carry out a valuation assessment of the stocks that BRK has declined to purchase.
As of 1245 GMT, Sprue Aegis' shares were down 28.97% at 134.95p.
Sprue Aegis received a written notice from Newell's company BRK Brands on 22 March which alleged that Aegis had breached provisions of the distribution agreement relating to its use of BRK trademarks.
The letter from BRK Brands continued to state that the breach is "not curable" and that following immediate termination of the agreement it would not purchase any stocks of unsold products.
BRK Brands has been one of Sprue Aegis' main distribution outlets but BRK issued a 12 month notice of the agreement's termination on 31 March 2017, which BRK has evidently brought forward due to the alleged breach of terms.
Sprue Aegis is seeking legal advice concerning the termination and allegations against it.
The termination has resulted in the delay of Sprue Aegis' release of its final results for the year ended 31 December, which will no longer be provided this month.
The smoke detector manufacturer did note, however, that it will no longer be obligated to pay a fixed annual distribution fee of £2.9m to BRK Brands and that it will now carry out a valuation assessment of the stocks that BRK has declined to purchase.
As of 1245 GMT, Sprue Aegis' shares were down 28.97% at 134.95p.
Related share prices |
---|
Sprue Aegis (SPRP) share price |
Stock News headlines are gathered from financial news sources around the web. Views and opinions on each item are from their respective authors and website. They are not opinions of LiveCharts.co.uk
Get a free widget for your website with our latest headlines.
You can now add our live prices and new headlines to your website.The news widget features quotes for Oil prices, spot Gold price and Indices plus a choice of news channel for healines.
Top Shares pages
- Share price quotes
- Share charts
- Share watch list
- Company Results Calendar
- Top Large UK Shares
- UK Market Sectors
- Stock market news
- Company news
- Share tips
- A-Z company search
More share features
POPULAR Share Prices
- Royal Mail share price
- Lloyds share price
- HSBC share price
- Barclays share price
- Prudential share price
- Santander share price
- NEXT share price
- Diageo share price
- BP share price
- Vodafone share price
- British Airways
- Centrica share price
- Tesco share price
- Taylor Wimpey Share Price
- National Grid
- GKP Share Price
- Marks and Spencer
- Rolls Royce
- Rio Tinto
- THG Share Price
- Aviva Share Price
- Boil Share price
- Easyjet Share Price
- Genedrive Share Price
- SSE Share Price
- IAG Share Price
- Boohoo share price
- HE1 share price
- AVCT share price
- BOOM share price