- Termination of Proposed Reverse Takeover of Element 2 Limited
- Update on Suspension of Listing
On 21 April 2023, the Company announced that it had entered into a non-binding heads of terms with Element 2 Limited (“E2” or “Element 2“), based in Yorkshire, to acquire 100% of the outstanding shares in Element 2 in an all-share transaction, subject to legal, financial and other due diligence and entry into a legally binding sale and purchase agreement (the “Proposed Acquisition“).
Since that time, both the Company and Element 2 have spent considerable time to raise the capital required for the transaction and reach an acceptable agreement on valuation and the final structure of the transaction. To date, this has not been possible and the Directors therefore announce that the Proposed Acquisition will not now proceed.
Status of Suspension of Trading
Due to the size and nature of the Proposed Acquisition, it was treated as a reverse takeover (“RTO“) for the purposes of the FCA’s Listing Rules. As a consequence, the Company requested a suspension of trading in its ordinary shares while the details of the Proposed Acquisition were finalised and the required information is published or the Proposed Acquisition is terminated. Trading in the Company’s shares was accordingly suspended on 24 April 2023 and has been suspended since that date.
Ordinarily, on termination of such discussions, the Company would request that its ordinary shares be restored to listing. However, the Directors of the Company are actively considering another potential acquisition opportunity in the renewables sector which would constitute an RTO and have therefore requested that the Company’s shares remain suspended for the time being.
A further announcement will be made by the Company in due course.
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