LONDON: Verditek (AIM:VDTK), a clean technology company, has agreed to sell its solar business to a new company owned by its bondholders for £528,340, subject to shareholder approval. The deal will also see the resignation of all the current directors and the appointment of Bob Holt and John Charlton as new directors.

The solar business, which includes Verditek Solar Italy srl, has been struggling to generate revenues and profits, and has been a drag on the company’s cash flow. The proposed disposal will allow Verditek to focus on its other businesses, such as graphene-enhanced filtration and emission control.

The bondholders, who hold secured convertible loan notes plus accrued interest, have agreed to surrender their debt in exchange for the solar business. They represent about 30 per cent. of the company’s share capital and have pledged to support the deal at the general meeting to be held later today.

The board changes will bring in new leadership and expertise to the company. Bob Holt is a veteran executive who has led several successful turnarounds, most notably at Sureserve Group Plc and Mears Group PLC. John Charlton is a former Barclays banker who has experience in listed business service companies and is also a trustee of The Sureserve Foundation.

Verditek to sell solar business to bondholders and become a cash shell