LONDON, UK: Verditek Plc (AIM:VDTK), the international green technology company, has sold its 10.56 per cent equity holding in Industrial Climate Solutions Inc (ICSI) to Baker Hughes Energy Services Canada Inc.
An initial payment of approximately £308,000 was received by the company in line with the size of its holding.
The initial consideration was received in cash on 2 February 2022 and further contingent proceeds to the Company of up to approximately CAD 3 million (c. £1.75 million) may arise dependent upon certain milestones being met.
The Directors are taking a prudent view on the likelihood of further receipts, subject to the requirements of relevant accounting standards. The Company will therefore recognise fair value of its investment of approximately £0.9 million in its statement of financial position at 31 December 2021. This valuation is subject to auditor review.
This equity investment was recognised in the Company’s audited annual report for the year ended 31 December 2020 at £23,405 and subsequently at £23,091 in the Company’s unaudited interim results for the six months ended 30 June 2021. The Company’s investment in ICSI was impaired in 2018, on the basis that ICSI was loss making and had net liabilities.
The sale will enable the Company to realise value from its investment for use in its core operations. Cash received will be used to provide working capital for Verditek’s solar power business.
It is the Company’s understanding that ICSI has reached out or will reach out to its key partners to notify them of Baker Hughes’ purchase and to advise on ICSI’s ongoing technology developments within Baker Hughes’ portfolio. The Company wishes the parties all the best in their endeavours.