Last checked at 1 Aug 2016 16:14
Tanfield Group PLC
("Tanfield" or the "Company")
Smith Electric Vehicles Update
The Board of Tanfield was last week informed by the Board of Smith Electric Vehicles ("Smith"), in which Tanfield holds approximately 5.76 per cent of the share capital, that Smith plans to centralise its operation to the United States in order to optimise the use of investor capital and is deploying this strategy to fortify its business and enhance its ability to serve existing and new customers worldwide.
The Smith Board took the decision to streamline the structure and operations as part of Smith's strategy to enhance customer service and product development. Smith intends to consolidate its operations hub in the US and add a division in the UK while selling and distributing its products worldwide. Smith intends to significantly strengthen its business and serve as the world's largest and leading manufacturer of short haul, medium size electric commercial vehicles. Smith's UK operation will become a branch of Smith USA Corp. It retains its presence in the UK with the objective to invest and optimize its sales and service business in Europe.
As reported in the final results for the year ended 31 December 2015, the decision was taken to impair the investment value of Smith to nil. It was also reported that in order for Smith to implement its plan it is seeking to raise $15m in new funding through a series 'F' financing round. The Board of Tanfield believe this is still the intention of Smith and will provide a further update when appropriate.
For further information:
Tanfield Group Plc
Daryn Robinson 0700 349 7489
WH Ireland Limited - Nominated Advisor
James Joyce / Nick Prowting 020 7220 1666
Peterhouse Corporate Finance - Broker
Peter Greensmith / Duncan Vasey 020 7220 9797