Tanfield Share Discussion Threads

[steveglobal4] 20/5/2014 14:18

Maybe an early offer for snorkel will come with the results at the end of this month,

this maybe the reason for the 1 month delay.

also it would have made sense to delay any offer talks until everyone knew where we are with smiths,

I think the timing is now perfect.

time will tell the story.

My opinion in that an offer for snorkel from adhern must equal at least twice todays share price.

[steveglobal4] 20/5/2014 14:08

after watching the adhern video saying he needs to buy tanfields stake in snorkel sooner or later and a new guide to tanfields value in smith, this looks good again, If smiths is worth somewhere between 12 and 25 million to tanfield what is snorkel worth to tanfield?

[m.t.glass] 20/5/2014 10:10

The success of a US national stockmarket listing will I imagine depend partly on how american the company is perceived to be - as that will influence what subsidies it will qualify for (and the level of attack by critics). The reduced Tanfield stake makes it significantly less British - but Sinopoly's involvement makes it more chinese.

The cab/chassis for the Newton truck has till now been made in the Czech Republic by an indian-owned company, who've now closed that facility and will be making the trucks in India (or elsewhere?). Will they still be supplying Smith? Or will Smith be sourcing the cab/chassis elsewhere? The wording of the Sinopoly jv implies that Sinopoly will have a say in sourcing the vehicle 'framework' whatever that means. (Might mean the subframe for ev components, within a chassis not supplied by them? Or does it involve them choosing the chassis supplier?). Smith already mentioned that they had been re-engineering some aspects of the latest generation of trucks - so presumably will be showing images sometime if the exterior is different.

[wishful_thinking] 20/5/2014 09:13

Didn't a previous update mention about $100m of debt being converted? On top of $40-50m being raised the dilution is not surprising. $200m valuation will be c$10m and $300m c$15m to us. Not great but better than it folding. The highs of 2012 seem like a crazy dream!

[bagpuss67] 20/5/2014 08:21

Very lucky not to have been wiped out completely.

[m.t.glass] 20/5/2014 08:20

"..a company about to cave in on the debt load..."

?

That sounds dramatically different from your previous glowing assessments! And more in line with the criticisms you have so often rubbished.

[multiplural] 20/5/2014 08:14

If you read carefully through todays update you will see that the main reason is the conversion of all debt. So we now hold a much smaller percentage of a debt free company as opposed to a large percentage of a company about to cave in on the debt load.

[ttny2004] 20/5/2014 08:11

MTG - same way I read it! Shameful. Look like Roys been taken to the cleaners and was caught napping. How does 24% suddenly become 5% must have been diluted by over 500%. Be interested to know whether happened just now or in the past which they forgot to disclose.

[multiplural] 20/5/2014 07:39

Nice move from Roy Stanley. Those warrants could end up being valuable after the listing hopefully gets done.
Total value of this will probably exeed the guess I former had of 10-15M$.
Now let us get an update with Snorkel in it as well, and get this stock a better valuation.

[m.t.glass] 20/5/2014 07:39

So, after the Over The Counter Bulletin Board listing, and prior to any attempted US stockmarket listing, the Tanfield stake in Smith - originally 100%, then 49%, then 25%, then 24%, will now be reduced to under 5% -- and might shrink further if/when a US national listing occurs. Header amended accordingly.

[m.t.glass] 20/5/2014 07:25

Smith Investment update

The Board of Tanfield is pleased to inform the market that today it signed an agreement with Smith Electric Vehicles US ('Smith') which conditionally binds it to sign certain consents to allow Smith to raise funding up to $30 million and to restructure the capital of the company. The Smith Board plan is to convert all debt into common stock prior to listing on the OTCBB and simultaneously raise up to $30 million. It is then proposed that Smith seeks a full listing on a U.S. National Exchange.

The Smith Board have made significant progress in its plan and succeeded in getting a major investment commitment from an important strategic partner, Sinopoly, as announced on 12 May 2014. The Smith Board continue to work hard to achieve their goal.

The Tanfield Board has evaluated the balance of risk and reward associated with the Smith restructuring plan. On balance it remains positive that supporting this plan represents the best possible outcome for all stakeholders of Smith, including Tanfield. The Tanfield Board considers that in entering this agreement it has sought to fulfil its obligation to its shareholders in seeking to optimise the value on its investment in Smith.

The agreement covers the following:

Debt: The total debt owed by Smith to Tanfield Group will be consolidated into the AA round of funding which has rights to a 30% uplift on conversion to common stock. Conversion will occur immediately prior to the issuance of Series E Preferred stock and closing of the Qualified Merger (listing on OTCBB)

Warrants: Smith will issue Tanfield 5,050,017 warrants at an exercise price equal to post-money valuation at the closing of the Series E Preferred stock and 5,050,017 at an exercise price equal to the post-money valuation at the closing of the post-merger financing or underwritten public offering. . The warrants will be exercisable within 6 months of issuance and carry a term of 2 years.

As a consequence of this agreement and as a current common stock holder in Smith, Roy Stanley, will receive two trenches totalling 3,997,600 warrants on the same terms. Mr Stanley is assigning the rights to these warrants to Tanfield Group plc for nil consideration for the benefit of the Group and its shareholders.

In aggregate the total number of warrants to be issued to Tanfield including those assigned to Tanfield are expected to amount to just under 2% of the issued share capital at the time of the OTCBB listing.

Value to Tanfield Group:

It is estimated that post-merger (listing on OTCBB) Tanfield will hold between 4% and 5% of Smith shares, (excluding warrants). The ultimate holding post the public listing on a US National exchange will depend on price at which any money is raised at that point.

There can be no assurance that the OTCBB listing or subsequent listing on a U.S. National Exchange will be achieved and that value will accrue to Tanfield in its investment in Smith.

[m.t.glass] 19/5/2014 10:04

Aye - putting it 55% up since start of 2014 and 159% up on a year ago!
In an uptrend since the beginning of 2012.

[littlealbatross] 19/5/2014 09:59

NTBR, where Pither and Stanley hold 18% and 5% respectively, jumped almost 30% this morning on a positive announcement.

[buywell2] 19/5/2014 08:45

Last post from me on here for a while as the chart of TAN is depressing me somewhat

Bottom Channel line suggests 10p now possible within next 3 months

dyor et bonne chance mes amis

[multiplural] 15/5/2014 09:30

Very good results from JCB this morning. Bodes well for Snorkel.



"2014 has got off to a mixed start. Some markets are showing improvement, with stronger demand in the more developed markets of the UK and North America, which is offsetting weaker demand in the more fragile economies of Asia, Latin America and Russia. Political uncertainty created by elections in India and Brazil is also having an impact on markets."

[johnga] 14/5/2014 08:15

It's reckoned by researchers at Tsinghua and Peking universities that between 1/5 and 1/3 of Beijing air pollution comes from car emissions.

The Chinese Government is considering capping the numbers of new car sales. Central government is putting pressure on local governments to broaden eligibility of available grants for electric vehicles to producers outside of China rather than just local ones.

They are forcing the use of catalytic converters onto users of cars trucks and buses as a measure to catch up with EU standards by 2018.

This could be good for foreign EV manufacturers entering a potentially massive market.

(Extracted from Moneyweek's 'China's war on pollution' dated 9 May 2014 issue 690)

[johnga] 14/5/2014 08:04

China and India have unprecedented levels of air pollution, largely of their own making in building so many coal-fired power stations. However they are now HAVING to take action as city life is becoming intolerable.

Maybe the Smith-Sinoply arrangement is the start of a commercial tipping point? The now urgent political commitment to cleaning up air pollution in Asia is on the back of a vast problem needing wide ranging solutions.

Now the city-dwelling rich are being affected by it (and leaving China in droves as are expats refusing to work in Beijing), action will HAVE to be taken!

[m.t.glass] 14/5/2014 07:22

Sinopoly chairman and executive director Cao Zhong said: "The combined expertise of Smith and Sinopoly, which will adopt the name of FDG Electric Vehicles Limited shortly.."




Eh?
FDG-EV Ltd?
Wassat abaht?

Does that mean any benefits from the jv might go into a separate jv company, detached or semi-detached from Smith?

-----------------------------------------------------------------------

EDIT: No - merely a bit of grammatical ambiguity. The "which" in that sentence refers to Sinopoly (changing its name), not to the combined Smith-Sinopoly venture, which will merely be re-labelled a Smith-FDG jv instead.

Presumably reflecting Sinopoly's switch from being predominantly a battery producer dabbling in EVs, to becoming predominantly an electric vehicles company.

Though it's a shame that Sinopoly's name change is going through at the same time as the impending wave of PR relating to Smith, as some journos will doubtless think Smith-FDG and Smith-Sinopoly is two deals.


PS: Anyone know where the 'FDG' initials come from?

[m.t.glass] 13/5/2014 08:21

(from a website that is well worth bookmarking imo, for its up-to-date coverage of EV progress worldwide.) (And there's scope for further comments to be posted on the Smith page)

[m.t.glass] 13/5/2014 07:47

This article about Sinopoly is skeptical of its prospects but helps put its scale into perspective. (Though recent announcements from the company suggest they are stepping up a notch):

[multiplural] 13/5/2014 07:32

Smith is still keen to become a public company, after one failed attempt in 2012. It said then it was turning to the private sector, and the Sinopoly investment seems to have emboldened the company for a second bid. "It certainly is our plan to be in the public markets," Hansel said. "We want to be on a major exchange."

[jam2day] 13/5/2014 05:10

Well if it goes through ball park 7p-10p per share. not bad for a Duck

[buywell2] 12/5/2014 18:44

Get real

SMITH is a dead duck waddling

China eats ducks for breakfast lunch and tea


























And they get them for free

[cool_hand] 12/5/2014 18:01

Unbelievable really.

Maybe we will slowly drift up.

[multiplural] 12/5/2014 16:46

From SEV´s press release:

Smith Electric will resume production in its Kansas City, Missouri, facility in mid-summer 2014. The company temporarily suspended production in the fourth quarter of 2013 in order to transition its supply chain to Tier 1 suppliers, which will enable Smith Electric to produce its vehicles at a lower cost.
"Sinopoly's investment in Smith Electric Vehicles marks an important milestone in recapitalizing and restructuring the company in preparation for the public market," said Charles Gassenheimer, chairman of the board of Smith Electric Vehicles. Gassenheimer was appointed chairman in April 2014, and brings extensive private and public financial markets experience, as well as significant operational expertise in the EV industry. He added, "This agreement underscores Sinopoly's institutional understanding of the global electric vehicle industry and the company's commitment to working with Smith Electric to create a major player in the market.