SEV US - Working Capital Fund Raise
8th March 2011
TANFIELD GROUP PLC ("Tanfield" or the "Company")
Smith Electric Vehicles US - Working Capital Fund Raise
The Board of Tanfield is pleased to announce that its associate company, Smith Electric Vehicles US ("SEVUS"), yesterday completed a private placing, raising US$58m of new equity.
As a result of this placing, in which Tanfield did not participate, the company now holds 32.2% of the outstanding issued shares in SEVUS on a fully diluted basis. The proceeds of the placing will be used by SEVUS to fund the increase in working capital required to ramp up its supply chain and manufacturing capability in order to satisfy the strongly growing order book.
Following the fundraising, Tanfield intends to exercise its option to receive a US$5m prepayment of the deferred consideration due from SEVUS on the sale of the Smith Electric Vehicles business which will result in a 203 day payment holiday for the SEVUS business.
Further information:
Tanfield Group plc 0845 155 7755
Darren Kell / Charles Brooks
Arbuthnot Securities Limited (NOMAD and Broker) 020 7012 2000
James Steel / Ed Gay
ENDS
This information is provided by RNS