LONDON (Alliance News) - Investment company Tanfield Group PLC Wednesday said Smith Electric Vehicles has raised sufficient funds to continue in business in the near term while it seeks to close a further fundraising.
Tanfield, which owns a 5.8% stake in Smith Electric Vehicles, said Smith raised a loan of USD2.9 million which will be converted to Smith common stock on the closure of a proposed subscription rights offering to existing Smith shareholders.
FDG, a Chinese electric vehicle manufacturer and shareholder in Smith, has agreed to support the subscription rights offering pro rata to its current shareholding, as well as agreeing to apply for any shortfall in the rights offering in order to assure that approximately USD10 million is raised.
"The Tanfield board will make a further announcement when the rights offering is closed and it has more detail on the implications and impact of this fund raising to its shareholders," Tanfield said in a statement.
Shares in Tanfield were trading down 2.5% at 18.03 pence Wednesday morning.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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Tanfield (TAN)