LONDON, UK: Mustang Energy plc and Cykel AI plc have entered into a non-binding heads of terms for Mustang to acquire the entire issued share capital of Cykel, a company incorporated in England and Wales, which is listed on the Aquis Stock Exchange Growth Market (AQSE: CYK).

According to the terms, Mustang Energy will pay 1.911 new Mustang share for each Cykel share. This ratio has been calculated on the basis of a valuation of £1,000,000 of Mustang, and a valuation of Cykel at c £19.22 million based on a ten day volume weighted average price (VWAP) up to 7 November 2023, being the date of the non-binding head of terms.

A draft prospectus has already been submitted to the Financial Conduct Authority (FCA) and is currently under review. If approved, the prospectus is expected to be published in the second quarter of 2024, aligning with the anticipated completion of the acquisition.

Mustang Energy is leveraging transitional provisions from the FCA’s Listing Rules, effective December 3, 2021, which exempts the company from maintaining a minimum market capitalisation of £30 million. The completion of this acquisition would mark a reverse takeover, fundamentally altering Mustang Energy’s business operations.

The deal hinges on several conditions, including the approval of a scheme of arrangement by Cykel’s shareholders and the High Court of Justice in England and Wales, necessary shareholder, third-party, and regulatory approvals, the publication of a prospectus, and the readmission of Mustang’s enlarged share capital to the FCA’s Official List and the London Stock Exchange’s main market.

Concurrent with these approvals, Cykel’s shares would be de-listed from the Access Segment of the Aquis Stock Exchange Growth Market. While the future of the deal remains uncertain, further updates are expected as the pre-conditions are met or waived.

Cykel AI is described as an AI co-pilot for digital tasks, capable of interacting with any website to complete complex tasks based on natural language instructions. It’s powered by TaskOS, an AI engine designed to mimic human behavior for interacting with software and websites. Cykel AI can navigate software interfaces, fill out forms, and click buttons in response to your commands.

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