Earlier this month, Smith Electric Vehicles said it would do an initial public offering of 4.45 million shares to raise around $76 million. Yesterday, Smith announced that this IPO registration will be withdrawn. The reason, said Smith CEO Bryan Hansel in a statement, is that, "we were unable to complete a transaction at a valuation or size that would be in the best interests of our company and its existing shareholders. We have instead elected to pursue private financing opportunities to support the execution of our business plan."
Smith, which makes large, all-electric delivery trucks, reported a net loss of $52.5 million last year, and lost another $27.3 million in the first six months of 2012.
KANSAS CITY, Mo.--(BUSINESS WIRE)--Smith Electric Vehicles Corp. (Smith), a leader in all-electric commercial vehicles, today announced that it has decided not to pursue its planned initial public offering. The company intends to withdraw its registration statement on Form S-1 as filed with the U.S. Securities and Exchange Commission.
"We received significant interest from potential investors, however, we were unable to complete a transaction at a valuation or size that would be in the best interests of our company and its existing shareholders," said Bryan Hansel, Smith's chief executive officer. "We have instead elected to pursue private financing opportunities to support the execution of our business plan."
About Smith Electric Vehicles
Smith Electric Vehicles Corp. (www.smithelectric.com) is a leader in all-electric commercial vehicles. Smith produces zero-emission vehicles that are designed to be a superior-performing alternative to traditional diesel trucks, providing higher efficiency and lower total cost of ownership. Smith Newton™ and Edison™ models are deployed around the world in a variety of applications, including parcel, food, beverage and equipment delivery and personnel transport including school and shuttle buses. The company operates manufacturing facilities in Kansas City, Mo., and outside of Newcastle, U.K.