LONDON, UK: Path Investments plc has entered into a conditional sale and purchase agreement to buy the entire issued share capital of DG Innovate Ltd. The consideration of £32 million will be satisfied by the issue of 5.342 billion ordinary shares of Path Investments at an issue price of 0.6 pence per share.
DG Innovate is a research and development company pioneering sustainable and environmentally considerate improvements to electric mobility and storage, focusing on the use of abundant materials and best engineering and scientific practices. The business was founded in 2009 by Martin Boughtwood, an engineer and inventor with over 40 years’ experience. It is intended that Martin will join the board as Chief Technology Officer of the Company on completion of the Proposed Transaction.
DG Innovate is currently developing products alongside major manufacturers across the transportation and energy sectors, research institutions and the UK’s Ministry of Defence (MOD) and has filed over 20 patents worldwide in the last five years.
DG Innovate is working with a number of potential customers across the transportation and energy sectors, including the MOD, a global Tier 1 commercial vehicle supplier and a major consumer automotive OEM.
To date, DG Innovate has raised funding from private investors, the UK Government, the Welsh Development Agency and through competitive grant awards under the Innovate UK Faraday Challenge.
The proposed acquisition is intended to provide DG Innovate with a more robust capital structure, access to the public equity markets and an enhanced leadership team as it seeks to move into product commercialisation in the short-to-medium term. www.dginnovate.com
Commenting, Christopher Theis CEO of Path, said: “We are delighted to have agreed the terms for the acquisition of DG Innovate. DG Innovate is at the forefront of motor drive technology for electric vehicles, with its innovative technology, together with offering, through its sodium-ion battery technology, a potentially cleaner and cheaper alternative to incumbent technologies.
“We believe that DG Innovate’s technology and IP portfolio, targeted at current market technology’s shortcomings, coupled with its strong commercial relationships, high calibre technical staff and near-term commercialisation opportunities make it the ideal target for Path.
“We are currently working hard to complete the required prospectus and look forward to making further announcements as matters progress.”
Path Investments PLC share price
0.28 GBX
12 Aug, 4:23 pm GMT+1 ·Disclaimer