LONDON, UK: Verditek plc, a clean technology company, has announced that it will sell its solar business to a new company formed by its bondholders for £528,340 in notes and £50,000 in cash. The deal is subject to due diligence, shareholder approval, and completion by 29 February 2024.
The solar business includes Verditek Solar Italy, its intellectual property rights, and its interests in various projects and contracts. The bondholders will also provide a loan of up to €100,000 to fund the solar business until completion.
Verditek will transfer its shareholder loan to the new company for nominal consideration. After the sale, Verditek will become an AIM Rule 15 cash shell, meaning it will have to make a reverse takeover within six months or face delisting from the AIM market.
The company is in talks with a potential new management team and a fundraise of about £300,000 to pursue a reverse takeover. However, there is no certainty that this will happen.
The sale and the loan are related party transactions, as one of the bondholders is Gavin Mayhew, a former non-executive director of Verditek. The current directors of Verditek, advised by WH Ireland, consider the terms of the deal to be fair and reasonable.
Verditek sold its 10.56% holding in Industrial Climate Solutions Inc (ICSI)