Tanfield – will private investors save the day?
Today’s announcement from Tanfield that it is trying to finalise an equity fundraising as an open offer at a substantial discount to the current share price surprised the market sending the share price down over 45% at one point.
It shouldn’t really have come as much of a surprise as management flagged the cashflow problems at the time of the interims commenting at the time that they were “reviewing alternative ways to fund the continuing cash outflow pending successful completion of the consolidation of the Electric Vehicle business which is expected to lead to a cash inflow for Tanfield.” It has certainly been a strange few months for the Group, but following Tanfield has always been a bumpy ride. On 10th March 2010 was news of the non-binding, conditional offer from Smith Electric Vehicles US Inc (“SEVUS”) for the…