UPDATE 1-Tanfield shares plunge on funding concerns

* Says in talks to finalise equity fundraising

* Sees raising funds through open offer at discount

* Shares slump as much as 49 pct
(Adds details)

Aug 26 (BestGrowthStock) – Tanfield Group Plc’s (TAN.L: ) shares
nearly halved in value, hitting a 7-year low, after the
troubled electric van maker said it was in talks to sell its
shares at a substantial discount to tackle a cash shortage.

The company said it expected the fundraising to be
structured as an open offer, partially underwritten by certain
directors.

Tanfield entered into a licence agreement on Aug. 5 with
U.S. associate Smith Electric Vehicles under which it would
take a 49 percent stake in SEV US. [ID:nWLA0626]

“There can be no assurance that the equity fundraising will
proceed or that the discussions with SEV US, which remain
subject to financing, will lead to a successful outcome,” the
company said in a statement.

Tanfield said it would review its financial position and
alternative sources of funding in the absence of a fundraising.

It said its net cash fell to 2.2 million pounds at end-June
from 5.4 million pounds at the end of 2009.

Tanfield shares were down 39 percent at 17.75 pence at 0846
GMT on the London Stock Exchange, after earlier touching a
7-year low of 14.75 pence.
(Reporting by Tresa Sherin Morera in Bangalore)

UPDATE 1-Tanfield shares plunge on funding concerns