27th Jan 2015 10:29
LONDON (Alliance News) - Tanfield Group PLC, a passive investment company with two investments, Tuesday said the combined carrying value of its investments remains at approximately the same level as it was in November last year.
In a statement, Tanfield Group said the carrying value of its 5.76% equity stake in Smith Electric Vehicles, excluding warrants, is USD10.73 million, while the carrying value of its 49% equity stake and preferred interest holding in Snorkel LLP is USD60.1 million.
In November, Tanfield had said the carrying value of Smith was "just under" USD10.73 million, while the holding in Snorkel was given the same value.
Tanfield said that Smith has provided it with an update on its activities, which it described as positive. However, Tanfield cautioned that there can be no certainty of Smith achieving its operational or funding plans.
According to Tanfield, the Smith board has confirmed that the 2012, 2013, and 2014 audit reviews, required for its OTC reverse merger, are progressing as planned and due for completion in the coming weeks.
"The board has also reported that production commenced on January 5. There are ongoing positive negotiations with strategic partners and potential investors to raise loan funds of approximately USD20 million. Strategic partner FDG has committed to funding of approximately USD42 million, of which USD13 million has been invested in the company," Tanfield said.
Tanfield said that Smith is still pursuing its plan to merge into American Business Services Inc and is planning to file the relevant documents.
"This will start the process of a full listing on a public US exchange, further details of which will be provided when appropriate," Tanfield said.
"The business has an order book taking it through the first half of 2015 and continued positive enquiry levels for orders beyond that from its existing customer base and new customers in USA, Europe and Latin America. Federal Government, State and city subsidies for electric vehicles are prevalent with California providing up to USD65,000 per vehicle," Tanfield added.
Tanfield shares were down 0.7% at 19.00 pence on Tuesday.
By Samuel Agini; [email protected]; @samuelagini
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