Make your money go further for just 25p per day

TANFIELD (LON:TAN) Open Offer to raise £2m – it doesn’t look enough to us!

08/09/2010 · Tanfield (TAN) 

The beleaguered engineering group has announced an open offer to all shareholders of 20 million new ordinary shares to raise up to £2m before costs (which shouldn’t be high). The issue price of 10p per share represents a 31% discount to the closing price on 7th September 2010) and equates to the issue of one new share for approximately every 3.7 existing shares. As I write the share price stands at 14p, with the shares off only 3.45% so the news has actually been quite well received.

Over 90% of Open Offer is underwritten by some of the Directors and Institutional Investors so it’s clearly in the bag.

The severity of the crisis at Tanfield is evident from the Directors provision of a £750,000 standby loan facility in the interim.

We commented previously in our blog on 26th August (‘Tanfield – will private investors save the day?’) suggesting that a much larger raise (c£7m) was necessary to give Tanfield a stronger hand…

Sign up and read the full article

Register to continue reading our content.

Get FREE access now

Already a member? Login


Previous article Next article

DON'T MISS OUT!

Get top investment ideas to help safeguard and grow your wealth.

Invaluable insight from the exciting world of smaller companies.

REGISTER FREE

DON'T MISS OUT ON OUR PREMIUM CONTENT

Become a champion investor for just £90 a year. Benefit from our high performing portfolios:

START FREE TRIAL

More on Tanfield

Tanfield Group (AIM: TAN) IPO of Smith Electric Vehicles pulled -  another classic from Tanfield

21/09/2012 · Company Insights
Just when things were starting to look a bit brighter for the manufacturer of Powered Access…

TANFIELD (LON:TAN) Open Offer to raise £2m – it doesn’t look enough to us!

08/09/2010 · Company Insights
The beleaguered engineering group has announced an open offer to all shareholders of 20 million new…

More Company Insights

Elderly challenges | Demotion | Australian boost

21/11/2024 · Churchill China · CVS Group · Renold · Tracsis

Bonkers Bargains: poised to recover with a new CEO

20/11/2024 · James Cropper

Improving returns | Questionable business models

Sign-up to our free email updates

SIGN UP