24.10.2011

Tanfield to benefit from Smith fund raising

US based Smith Electric Vehicles Corporation, which is part owned by Tanfield, the parent of Snorkel aerial work platforms, has filed Form D with the U.S. Securities and Exchange Commission regarding its private placing of $30 million of new convertible notes and warrants.

As part of the placing Tanfield has converted $1.99 million of deferred consideration related its sale of the Smith UK business earlier this year into a convertible note and warrant. The Note will convert into a new class of preferred equity in Smith following the completion of the placing which is expected later this year.

Once the entire transaction has been completed Tanfield will hold 27.23 percent of the enlarged share capital of Smiths.

The net proceeds of the placing will be used to fund Smith's on-going working capital and to pay Tanfield the balance of its deferred consideration, plus accrued interest, of approximately $5.6 million.

Tanfield says that these funds will be used to finance the on-going development of its Snorkel business.