Tanfield Share Discussion Threads

[billy18] 05/5/2015 11:35

i believe things will happen quickly now.

FDG see the future for themselves...they will force the pace of
SMITHS and the joint venture

[m.t.glass] 05/5/2015 10:24

Having to convince shareholders that they should cough up, by playing up the (possible) prospects. Fair enough, except it sounds a bit like "Offer ends soon - buy now or else."

It's a time-limited "SPECIAL OFFER" with a threat attached.
If not taken up, the arrival of 'other sources' of money will presumably dilute the percentage stake of existing holders, including Tanfield. To avoid dilution, all existing holders will have to chip in. If one or more of them chooses not to, and that portion of the $20m is raised from an additional investor, the stake of each existing holder will be diluted accordingly - including that of Tanfield even if Tanfield paid up.


(ps - they obviously meant 'ensure' not 'assure')

[multiplural] 05/5/2015 10:14

Below is an abstract from the letter sent to SEV shareholders. It is reported that other sources for funding is available, but that shareholders have a time limited opportunity to use their right of first refusal:

"The opportunity that we believe we have created gives Smith shareholders a unique opportunity. Although other funding opportunities exist, we have negotiated a right of first refusal for current Smith investors to invest the additional $20 million of capital in the JV, in addition to FDG’s $15 million commitment. This will be available for a limited time. We view the JV as a significant value creation engine for Smith’s shareholders and want to assure that we take first mover advantage of this opportunity.

It is also important to note that Smith will be the exclusive manufacturing, product development services, and service and support entity for the JV in the US. It is expected that this will create an initial stream of monthly revenue from the JV into Smith. Once the FDG battery platform is fully ready for commercial deployment, it is anticipated that Smith will achieve positive gross margin per vehicle. In addition, Smith retains full rest-of-world rights for engineering services, licensing, and Newton and Edison sales. "

[m.t.glass] 05/5/2015 08:21

With Smith being the junior partner in the venture (in the US zone), will the proposed listing face a "not American enough" challenge? Being seen as a 'Trojan horse' for Chinese influence? I am presuming not - as vehicle production within the US will boast US jobs (at the start of the venture anyway).

If all goes according to plan, how soon will the New York and Chicago sites be brought into use. (Lease payments still being made on NY? Chicago site never named?)

(or will the revised shape of the enterprise involve an exit from both?)

[jam2day] 05/5/2015 08:13

regardless
very positive in my opinion and about time too

[m.t.glass] 05/5/2015 08:10

".. What I think they should do is to raise funds for SEV when going public in the next month or so, and then let SEV invest the 20M in the JV..."

A degree of wishful thinking there? I hope the public listing goes ahead in a way that does pull in so much cash that they can throw $20m into the deal - but I am no more than 50% sure it will all slot smoothly into place in time. And the Chinese might know that. Over recent years the Tanfield stake in Smith has reduced and reduced, from 100% all the way down to 5.76%. (2.7% of the jv). I hope they don't opt to allow yet another reduction, just as things pick up at Smith.

[multiplural] 05/5/2015 08:04

Note that even after a 70+ % rise in the last month FDG is up further on the news today.

[multiplural] 05/5/2015 08:03

All SEV shareholders have a right of first refusal. The funding , as I understand it, is available from other sources, but if interested all SEV shareholders can participate. What I think they should do is to raise funds for SEV when going public in the next month or so, and then let SEV invest the 20M in the JV.
The most interesting part in all this is that suddenly one can see value in the warrants we are holding. It could all turn out to be several times the present carrying value of some 5p worth for Tanfield.

[m.t.glass] 05/5/2015 07:57

"The New Joint Venture intends to raise an additional $20m in cash with the current Smith common stockholders having a first right of refusal to participate on a pro rata basis. As more details are known, the Board will consider Tanfield's position."

Does this mean Tanfield are being invited to chip in an additional $1,152,000 to help fund this proposal? And if they decline to do so, will their existing stake be further diluted? Will Tanfield want to push for earliest completion of the Snorkel buyout first?

[multiplural] 04/5/2015 21:09

It is not an article, it is a stock exchange announcement. So yes, the new is that the deal is finally on for real, and as part of that Smith is listing via the shell. Probably within a few weeks.

[m.t.glass] 04/5/2015 20:27

Is the article re Smith/FDG a direct repeat of last year's statement? Or is there somethingnew in it?

[multiplural] 04/5/2015 15:29

Interestingly the FDG stock have gained around 800MUS$ in value, or some 72%, in the last month leading up to todays release. With more than 50% added in the last week I can't help thinking if it is related to the news issued today. I wonder if the news will be as valuable for Smith, and in the end for us in Tanfield. Who knows Smith might turn up to be the most valuable asset after all.

[multiplural] 04/5/2015 13:49

And the more detailed release from the Hong Kong exchange by FDG :

[bagpuss67] 04/5/2015 13:11

Nope. Its a shareholder contribution of $5m as part of the chapter 11

[multiplural] 04/5/2015 09:14

I wonder if the repayment of a shareholder contribution mentioned below could be related to the 50M note Tanfield have in Snorkel:


The net proceeds from the new notes offering will be used to redeem Ahern Rentals’ outstanding 9.5-percent second priority senior secured notes due 2018, pay down a portion of the amount outstanding under its ABL credit facility, repay a shareholder contribution and pay related fees and expenses. A notice of redemption for the existing notes was issued April 24.

[multiplural] 03/5/2015 13:32

Another interesting article on same subject:

[multiplural] 03/5/2015 13:27

Thanks Jam here is the link to the article:

[jam2day] 03/5/2015 12:08

Matthew Elvin, Snorkel CEO, added, “Snorkel UK has been building its customer base and demand for Snorkel products during the past few years. The time is right to make a significant investment in our UK division, and we are excited to be creating jobs and further improving our customer support.”

The addition of the new roles for Snorkel UK follows the recent announcement that Snorkel and Xtreme Manufacturing are tripling their joint sales team in North America, in response to increased customer demand for both brands.

[multiplural] 02/5/2015 16:35

MT , I still hope Smith have preserved most of their competitive advantage, and are ready to use it soon after they become public. I have hopes that we are close to that situation and are just waiting to hear how the financing have been construed. Interesting times ahead for both of Tanfield's assets. Snorkel deal and public listing of Smith could really fire this stock up.

[m.t.glass] 02/5/2015 15:49

"... Companies like Smith Electric were able to find buyers to keep the dream alive, but other entrants into the plug-in vehicle market have fallen by the wayside as their ideas didn’t pan out. It may take more enticing by governments like France to get more commercial EVs on the road..."

[joeblogg2] 01/5/2015 08:49

Still strange going ons with the share price lately. News/results not far away.

[multiplural] 28/4/2015 22:17

Worth a review if you doubt the Snorkel deal :

[m.t.glass] 28/4/2015 07:54

I get FDG news alerts almost every day. Most of them are boasting a presence at some show or other, or shuffling some small business arrangement with other Chinese companies. I rarely read them as they are very lengthy but contain very little of relevance. But maybe there is summat significant amongst it all.

[multiplural] 28/4/2015 07:44

I have noticed that FDG in Hong Kong have risen almost 25% during the last two days. I wonder if we finally will have some positive news on their cooperation with Smith.