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For immediate release
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17 July 2012
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TANFIELD GROUP PLC ("Tanfield" or the
"Company")
Tanfield Group plc placing raises £2m to support
Smith Electric VehiclesCorp., trading update
and Director's Dealing
Tanfield is pleased to announce that it has raised
approximately £2.0m net of expenses to enable the
company to provide a loan facility to its associate
company Smith Electric VehiclesCorp.
("Smith"). These funds were raised by way
of a placing of 5,135,714 new Ordinary Shares of 5 pence
("Shares") with institutional and other
investors at a price of 42 pence per Share, realising
gross proceeds of £2.2m.
Tanfield, which owns a 24% stake in
Smith, has agreed to provide a short-term
bridging loan to Smith, a US entity, to provide liquidity
support prior to Smith's planned initial public
offering ("IPO"). The loan matures 180 days
from issuance and must be repaid upon the closing of
Smith's IPO. Smith has engaged with its key
shareholders to obtain bridge financing totalling in
excess of $12m. Tanfield will earn market rates for
the provision of the loan. In the event the IPO does not
take place and the loan had been drawn down,
Tanfield's loan, along with the other providers of
bridging finance, would stand as a senior unsecured
obligations of Smith.
Trading Update
In the first quarter of 2012, Tanfield raised
approximately £11.4m net of expenses by way of a placing
of new equity to invest in its supply chain. This enabled
Tanfield to grow its global powered access business in
response to its order book demand. Since that date,
it has secured increased volumes from its suppliers,
enabling increased output from all of its manufacturing
sites. Demand for powered access products has held
up and, as its lead times come down, order intake rates
should continue to rise. Tanfield continues to
expect to reach break-even volumes during the second half
of the current financial year. Given the importance of
managing working capital in its growth process, Tanfield
chose to raise additional funds to support Smith rather
than risk jeopardising the growth in its powered access
business.
Darren Kell, Chief Executive, commented "Given
that Tanfield is Smith's largest shareholder,
Tanfield is keen to support the company in its planned
IPO. This fundraising that will enable Tanfield to
participate in a lending facility that gives Smith that
support without risking the progress achieved year to
date in the powered access business."
Directors Dealing
As a result of his participation in the placing Roy
Stanley, a director of the Company, will acquire 238,905
Shares at a price of 42 pence each. Following this
acquisition Mr. Stanley will hold 12,478,756
Shares.
Admission and Placing Statistics
Application has been made for the placing shares to
be admitted to trading on AIM, which is expected to occur
on the 23rd of July 2012.
The Placing Shares represent approximately 4.1 per
cent. of the Company's existing Ordinary Shares and
will, when issued, represent approximately 4.0 per cent.
of the Company's share capital as enlarged by the
placing.
Following Admission of the placing Shares, the
Company will have 128,971,225 Ordinary Shares in issue.
This figure may be used by Shareholders, from Admission
as the denominator for the calculations by which they
will determine if they are required to notify their
interest in, or a change in their interest in, the share
capital of the Company under the FSA's Disclosure and
Transparency Rules.
For further information:
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Tanfield Group Plc
Darren Kell, Chief Executive
Charles Brooks, Finance Director
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0845 155 7755
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WH Ireland
James Joyce / Nick Field - Corporate
Finance
Seb Wykeham / Ruari McGirr - Corporate
Broking
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020 7220 1666
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Buchanan
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A registration statement relating to Smith's
common stock has been filed with the U.S. Securities and
Exchange Commission but has not yet become
effective. These securities may not be sold nor may
offers to buy be accepted prior to the time the
registration statement becomes effective. This
release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any
sale of these securities in any jurisdiction in which
such an offer, solicitation or sale would be unlawful
prior to registration or qualification under the
securities laws of any such jurisdiction.
ENDS
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