Last checked at 24 Oct 2011 07:00
24 October 2011
TANFIELD GROUP PLC
("Tanfield" or the "Company")
New fundraising round at Smith Electric Vehicles Corp.
The Board of Tanfield is pleased to announce that its US associated company, Smith Electric Vehicles Corp. ("Smith"), has filed a Form D with the U.S. Securities and Exchange Commission announcing a private placing of $30 million of new convertible notes and warrants (the "Placing").
As part of the Placing, Tanfield converted $1.99 million of deferred consideration related to Smith's acquisition of the Smith Electric Vehicles business earlier this year into a convertible note (the "Note") and warrant. The Note will convert into a new class of preferred equity securities in Smith following the completion of the Placing and Smith obtaining necessary approvals, which is expected to be in the fourth quarter of 2011. Following the Placing and the conversion of the Note, the Company will hold 5,258,814 ordinary shares in Smith representing, on a fully diluted basis, approximately 27.23 per cent of the enlarged ordinary share capital of Smith.
The net proceeds of the Placing will be used to fund Smith's ongoing working capital and development requirements and to pay Tanfield deferred consideration, plus accrued interest, of approximately $5.6 million.
The funds received by Tanfield will be used to finance the ongoing development of the Company's Snorkel Powered Access business.
Further information:
Tanfield Group plc Darren Kell, Chief Executive Charles Brooks, Finance Director
| 0845 155 7755 |
Arbuthnot Securities Limited (NOMAD and Broker) James Steel Ed Groome | 020 7012 2000 |