Last checked at 5 Aug 2009 11:12
The Tanfield Group PLC
("Tanfield", or "the Company")
5 August 2009
Tanfield Completes Negotiations over US Associate
Further to its announcement of 6th February 2009 Tanfield is pleased to announce that it has now entered into a licence agreement (the "Licence") and shareholders' agreement ("Agreement") with its US Associate, Smith Electric Vehicles US Corporation (SEV US Corp).
Under the Agreement and following the completion of the SEV US Corp fundraising (the "Fundraising"), which is expected to be closed shortly, Tanfield will hold 49% of the equity of SEV US Corp. In addition, to protect Tanfield's shareholding from dilution, Tanfield has been issued with a warrant with an exercise price of $0.01 per share over 49% of the aggregate of: (i) any shares issued pursuant to SEV US Corp's 2009 Incentive Compensation Plan and (ii) any SEV US Corp's shares issued pursuant to the Fundraising with a value of over $7,500,000 and up to $15,000,000.
In exchange, pursuant to the Licence Tanfield licenses Intellectual Property Rights (IPR), brand and all existing sales and sales enquiries in North America. Additionally, SEV US Corp will pay Tanfield a royalty calculated as 2% of the sales price of each vehicle up to £1m, and 1% per vehicle thereafter with an immediate advance against royalties of £1 million, the license can only be terminated in the event of non payment of royalties and non performance.
For further information:
The Tanfield Group Plc +44 (0)845 1557 755
Darren Kell, CEO
Charles Brooks, FD
Arbuthnot Securities +44(0)20 7012 2000
Nomad and Broker
James Steel
Media Enquiries:
Dan Jenkins
The Tanfield Group Plc +44 7725 784089
dan.jenkins@tanfieldgroup.com