LONDON: Electric Guitar PLC (LSE: ELEG) said Friday it has signed non-binding heads of terms to acquire Dunbar Energy Inc., a newly established U.S.-based energy company, through a reverse takeover transaction.
Dunbar, incorporated in Nevada, is focused on powering digital infrastructure, including artificial intelligence and cryptocurrency operations. It aims to convert coal mine methane and stranded gas into electricity for modular data center sites and crypto operations, while generating carbon credits for energy transition partners.
To support its strategy, Dunbar is building a portfolio of energy assets across the United States, including 3,500 acres of mineral rights and producing wells in Kentucky. It also has interests in wells in Louisiana and is in exclusivity to acquire a gas-powered data center site in Pennsylvania.
Electric Guitar said Dunbar’s team includes veteran coal and oil and gas executives, along with IT and data center professionals. Consideration for the proposed RTO would be satisfied via newly issued ordinary shares, which are expected to comprise a majority of the company’s enlarged issued share capital.
The transaction is subject to due diligence, binding documentation, shareholder approval, regulatory waivers and re-admission to AIM. A 90-day exclusivity period has been agreed, with transaction costs borne by the withdrawing party if no material adverse findings emerge.
Electric Guitar added that if Dunbar withdraws post-binding agreement, additional compensation will be payable. A further announcement will follow once terms are finalized.