(Alliance News) - Path Investments PLC on Friday said it has agreed to buy electric motor specialist DG Innovate Ltd for GBP32 million.
As part of the deal, the energy and natural resources investor plans to issue 5.34 billion shares at 0.6 pence per share.
The deal would be considered a reverse takeover, so Path shares were suspended from trading on the London Main Market on Friday. They were last quoted at 0.28p, though as recently as February the stock traded above 0.8p.
Bristol-based DG Innovate is a research and development company specialising in electric motor technologies and energy storage solutions.
Path is providing a loan facility to DG Innovate of up to GBP600,000 and an initial GBP300,000 has been provided on signing of the agreement.
Path Chief Executive Christopher Theis commented: "DG Innovate is at the forefront of motor drive technology for electric vehicles, with its innovative technology, together with offering, through its sodium-ion battery technology, a potentially cleaner and cheaper alternative to incumbent technologies.
"We believe that DG Innovate's technology and IP portfolio, targeted at current market technology's shortcomings, coupled with its strong commercial relationships, high calibre technical staff and near-term commercialisation opportunities make it the ideal target for Path."
By Will Paige; willpaige@alliancenews.com
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