Smith Electric Vehicles, an investee company of the Newcastle-headquartered Tanfield Group, has made steady progress towards its goal of public listing on a US exchange.
The firm has now closed its series E funding round, converting all investment debt to equity.
Before progressing to OTCBB listing, however, it wants to produce a completed audit up to the end of 2014, which it believes would be more reflective of the business in its first filings as a merged public company. This should be completed in January.
Tanfield Group, formerly Comeleon, has changed its main focus from automotive components and imaging equipment to electric vehicle manufacturing and specialist engineering.
Following the conversion of debt, it now holds 5.76% of the equity of Smith, excluding warrants.
The value is the holding is just under $10.73m (£6.9m), representing 5p per share.
Tanfield said in a statement posted on the London Stock Exchange: “The Tanfield board takes the view that although all the signs are very positive and the fact that significant debt holders have now converted their debt to equity, thus sharing the risk with all other shareholders.
“There still remains an element of risk that the Smith board will not succeed in its plan or achieve the indicative timescale.
“It considers that it has sought to fulfil its obligation to its shareholders in seeking to optimise the value on its investment in Smith.
“The board will endeavour to return value to shareholders as soon as practically possible.”