Electric vehicle maker Tanfield, of County Durham, has today announced significant funding of up to $62m for one of its US-based investments.
The cash is being ploughed into Smith Electric Vehicles by Hong Kong-listed Sinopoly and will be invested in three stages. Sinopoly is a hi-tech group principally involved in the production, distribution, sale and research and development of Lithium-ion battery and related products. Sinopoly’s battery products’ primary applications include electric vehicles and energy storage.
It is envisaged that will float on the US Nasdaq Index.
A spokesman for Tanfield, headquartered in Stanley, said: “The board of Tanfield believes there is still a very high level of risk that the planned listing process outlined by the Smith management will not be successful. Part of the process requires the restructuring of the capital structure of Smith and the approval of a number of significant investors. These approvals may not be granted.
“As indicated in Tanfield’s investment update of 14 March 2014 there will be a marked dilution to the ultimate holding by Tanfield in its Smith investment and therefore in the ultimate value to Tanfield shareholders.”
In November, Tanfield Group’s loss-making engineering unit, Tanfield Engineering Services Ltd, was put in the hands of the receivers after suffering losses of approximately £732,000 and negative assets before group balances of around £367,000.