Business
Heads of Terms re US Joint Ve
Heads of Terms re US Joint Ve.
About this update from Tanfield Group Plc
[{"type":"text","content":"\n RNS Number : 8994M Tanfield Group PLC 06 February 2009 \n \nTanfield Group PLC\n06 February 2009\n Tanfield Group plc ('Tanfield'; 'the Group'; or 'the Company')\nHeads of Terms Regarding the Production of Electric Vehicles in North America\n\n· Establishment of Smith Electric Vehicles US Corporation (SEV US Corp) in USA\n \n· Tanfield to licence Intellectual Property Rights (IPR), brand and all existing sales and sales enquiries in North America, in exchange for 49% equity stake in SEV US Corp and per-vehicle royalties\n \n· Royalties payable to Tanfield to be calculated as a percentage of the sales price of each vehicle.\n \n· An advance against royalties of £1m shall be payable to Tanfield on completion\n \n· Fast and efficient Route to market at no cash cost to Tanfield\n \n· SEV US Corp to fund establishment of US manufacturing, sales and marketing infrastructure\n \n· SEV US Corp to commence production of Smith electric vehicles during 2009 \n\n· US majority owned company – qualifies for governmental funding and other benefits\n\nCommenting, Darren Kell, CEO of The Tanfield Group Plc, said: ''North America represents potentially the largest single market for our commercial electric vehicles. The establishment of Smith Electric Vehicles US Corporation will provide Tanfield with a fast, efficient and economically prudent route to market.\n\n'The additional volumes which are anticipated to be generated by SEV US Corp will further strengthen the supply chain, while offering additional cost savings via shared procurement and shared supplier development.'\n\nFor further information:\n\n\n\n\nThe Tanfield Group Plc\n\n\n+44 (0)845 1557 755\n\n\n\n\nDarren Kell, CEO\n\n\n\n\n\n\n\nCharles Brooks, FD\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nArbuthnot Securities\n\n\n+44(0)20 7012 2000\n\n\n\n\nNomad and Broker\n\n\n\n\n\n\n\nJames Steel/ Katie Shelton\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\...