28.09.2015

SEV looks shaky

Tanfield, the previous owner of Snorkel has announced that its other investment – Smiths Electric Vehicles has launched a new $10 million rights issue, in order to raise more funds and stave off bankruptcy.

If the company does not manage to raise the $4.5 million by the end of the week, it is likely to file under Chapter 11 insolvency. Tanfield has said that it will not take up its option under the offering, which means that its holding will be further diluted at best.

Smith’s has also appointed three new directors - Peter Christenson, Christofer Mowry and John Micek III. While Tanfield acknowledges that its shares risk being written down to zero, it maintains that the net asset value of the company remains positive.

Vertikal Comment

It sadly looks as though our prediction that Tanfield will be unlikely to see any benefits from its investments is looking increasingly likely to prove correct.