I thought originally SEV was aiming to list on Nasdaq! OTCBB does not trade listed shares. As the name indicates it's an OTC bulletin board which 'does not trade in listed securities'. So either this is a first step on the way to a proper market listing or SEV has seriously pulled in its ambitions to list. I'm not sure therefore whether Tanfield will be able to use an OTCBB price to fully value its holding in SEV. They could trade out of them if there's enough liquidity on the OTCBB but that's the problem, there usually isn't. Still, on the positive side, at least we will get some sense of public value out of this manouvre and TAN could use that as a reference point for a private block sale.
"During the year, Tanfield's holding in Smith Electric Corp was diluted by successive fundraisings.......... It is therefore now treated as an investment. As such, it is now being held at the lower of cost and realisable value. Whilst the realisable value of a private company is difficult to estimate, all valuation discussions in relation to recent fundraisings by Smith Electric use valuation ranges well in excess of £1.3m which is the recorded cost of the investment. The investment is valued at cost, £1.3m."
In addition there is a loan to Smith Electric of pound 1.8 million recognized in assets.
The 2013 results that were due to be released sometime in April will be released sometime in May. Usual attitude from Tan management - I mind a few years back on the morning of their AGM they cancelled it !!
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