Snorkel International Holdings – As announced on 2 December 2015, based on information provided by Snorkel, Tanfield estimated that Snorkel sales in 2015 would be approximately 30% higher compared to 2014 as the business continues to progress year on year. The carrying value of the 49% holding and the preferred interest holding (Loan note) is $60.1 million as set out in the Company's interim accounts which, based on the current exchange rate, is around £41.5 million. This represents approximately 27 pence per share of the proposed enlarged issued share capital.
Smith Electric Vehicles - The carrying value of Smith in the interim balance sheet of the Company at 30 June 2015 was £4.8m, amounting to approximately 3.1 pence per share of the proposed enlarged issued share capital. The board of Tanfield is currently reviewing the position of the investment in Smith and its carrying value and will update shareholders in due course. .
Smith has informed Tanfield that it is still seeking to raise further funding that is required to implement its growth plan and that this funding may now take the form of convertible debt in place of the originally proposed Subscription Rights Offering . The carrying value of Smith in the interim balance sheet of the Company at 30 June 2015 was £4.8m, amounting to approximately 3.1 pence per share of the proposed enlarged issued share capital. The board of Tanfield is currently reviewing the position of the investment in Smith and its carrying value and will update shareholders in due course.
· Tanfield is a 49% shareholder in the equity of Snorkel, following the disposal of 51% of the Snorkel business in 2013. · The carrying value of its 49% holding and its preferred interest holding (Loan note) is $60.1 million as set out in the Company's interim accounts which, based on today's exchange rate, is around £39.8 million. This represents approximately 26p per share. · The trigger event for the initial realisation of the Snorkel investment occurs when the company has achieved an annualised trailing EBITDA of $25 million dollars in any 12 month period by 30 September 2018.
I agree Smith is probably worthless but Snorkel is quite the opposite with management taking shares instead of cash also the bigger investor upping there stake recently tells me where this is going. If you research the AWP sector you will see its booming and set to increase, Snorkel was always going to take a few years to turn around and I think the time for the deal to be met is close!
So the Tanfield board are short of cash to pay their salaries, just about the only cost this company has other than listing/broker fees now. How should they raise the money to pay themselves? By giving themselves discounted share options and turning their loans into discounted shares... same old story at Tanfield!
What is left for the real shareholders here...
around 5% of Smiths who have only just been saved from bankruptcy. This shareholding will be diluted more and more with no possible return to TAN shareholders. IMO This business has always been worthless and everyone knows it. Does anyone know if they are even building vehicles anymore?
the 49% shareholding in Snorkel. No real information available on this from what I can find out but the UK company posted a £5m loss for 2014 and the general announcements from their bigger/more efficient competitors seem to show a general contraction in sales of around 15-20% in Europe. Does anyone know what happens with regard to the Ahern option if Snorkel doesn't meet its $20m, or so, EBITDA target by 2018?
Application has been made for the admission to AIM of 600,000 new ordinary shares of 5p each in the Company following the exercise of 200,000 options at 5p by Management Services Cambridge Limited, a Company wholly owned by Jon Pither, the Chairman of the Company and the exercise of 400,000 options at 5p by Penshaw Consultancy Limited, a Company wholly owned by Daryn Robinson, the Company Secretary.
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