Issue of Shares

RNS Number : 8733X

Tanfield Group PLC

25 November 2014

 



Tanfield Group PLC

("Tanfield" or the "Company")

Issue of shares

The Company announces that it has today raised a total of £300,000 through its broker Peterhouse Corporate Finance, through the placing of 1,818,181 ordinary shares (the "Placing Shares") at a price of 16.5 pence per share (the "Placing").

The placing price represents a 1.5% discount to the closing mid-market share price on 24 November 2014.

As announced of 17 November 2014, progress has recently been made by Tanfield's investee company Smith Electric Vehicles US ("Smith"), towards its goal of a public listing on a US exchange and as  part of this listing process, Tanfield has been required to convert debt it previously held into equity in Smith, (currently 5.76% of the equity, excluding warrants, valued at £6.9 million). As a direct consequence of this conversion, a tax liability, which has already been provided for in the Company's previously reported accounts, becomes payable by Tanfield. The Company has therefore added to its cash reserves and intends to use the net proceeds of the Placing to cover this liability.

The Placing Shares will, when issued, be credited as fully paid and will rank pari passu in all respects with the existing ordinary shares of 5 pence each in the capital of the Company, including the right to receive all dividends and other distributions declared, made or paid in respect of such shares after the date of issue of the Placing Shares.

The Company has applied for admission of the Placing Shares to trading on AIM, a market operated by the London Stock Exchange plc (the "Admission"). It is expected that Admission will take place and that trading in the Placing Shares will commence on or around 28 November 2015.

The Placing is conditional upon Admission becoming effective.

Following Admission, the Company's enlarged issued share capital will comprise 143,540,740 Ordinary Shares. The Company holds no shares in treasury. Therefore the total number of Ordinary Shares with voting rights is 143,540,740, which figure may be used by shareholders in the Company 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 FCA's Disclosure and Transparency Rules.

Roy Stanley, a director of the Company, has participated in the placing and subscribed for 181,818 shares.

Contacts:

Tanfield Group Plc

Roy Stanley                                                                             0845 155 7755

WH Ireland Limited Nominated Adviser

James Joyce / James Bavister                                              0207 220 1666

Peterhouse Corporate Finance Limited Broker

Duncan Vasey / Lucy Williams                                              0207 469 0930

 

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