13.05.2014

SEV investment

Chinese lithium ion battery manufacturer Sinopoly is considering a strategic investment in Smith Electric Vehicles, 25 percent of which is held by Snorkel shareholder Tanfield.

The three stage investment will start with a $2 million purchase of secured debentures. The second stage will be a $10 million purchase of preferred stock as part of a minimum $20 to $30m issuance of preferred stock by Smiths, and following the signing of a battery and component supply contract by Smith in favour of Sinopoly. The third stage will be for Sinoploy to acquire a further $30 million worth of shares in SEV- If and when it obtains a US National Exchange Listing.

Smiths is also in discussions with a possible merger with an over the counter traded company, which could help shortcut an application for a full listing on a US national exchange, with a minimum flotation value of £40 million.

Vertikal Comment

The proposed flotation of SEV goes on and on and on, and just doesn’t look like reaching a successful conclusion. Tanfield which is now only a minority shareholder clearly, and probably rightly, has serious doubts about the chances of a national flotation ever happening, and is probably unlikely to see a great deal at all from its diminished stake in SEV– at least any time soon.