B.S.D. Crown Ltd. - Company Update

B.S.D CROWN Ltd (LSE:BSD)

(the "Company")

Ramat Gan, Israel, 17 January 2018

Company Update

Further to Company's announcements dated 20 June 2017, 12 September 2016, 3 August 2016 and 17 May 2016 the Company was informed that on 15 January 2018 an indictment was filed at the economic department of the Tel Aviv District Court , against the former ultimate controlling shareholders of the Company, Mr. Alexander Granovsky and Mr. Gregory Gurtovoy and against the former Chief Executive Officer of the Company, Mr. Israel Jossef Schneorson (together herein, the "Accused").

According to the indictment the Accused used the deposits of the Company's and its parent company, BGI Investments (1961) Ltd., that were deposited in foreign banks, as collateral for loans taken by private companies related to the Accused, without having received applicable approvals by law. According to the indictment, the total amount of the misappropriated funds by the Accused, is USD 60 million.

The indictment attributes to the Accused to the following infringements: theft by officer, fraudulent conversion, fraud and breach of trust, falsification of corporate documents, breaches of reporting obligations under the Israeli Securities Authority Law, non-compliance with the provisions of the Israel Securities Authority with respect to misleading reasonable investors and offenses under section 4 of the Israeli Money Laundering Law.

The Company wishes to clarify that the Accused no longer hold any positions in the Company and / or any of its subsidiaries.

Enquiries:

Joseph Williger, Active Chairman [e-mail]    

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