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(Alliance News) - Shares in Sabien Technology Group PLC plunged on Wednesday as it announced that its GBP11.5 million acquisition of Swiss-based health destination firm Ptarmigan Health Destinations would not be going through.
Shares in the energy efficiency technology firm were restored to trading on Wednesday after being suspended last January, and were down 45% at 0.10 pence.
The reason for the withdrawal was that Sabien would not have been able to secure the required approval from Swiss and UK regulators in enough time to avoid its shares being cancelled on AIM.
As a result of this, Sabien said it requires further financing in the short-term in order to invest in itself as well as bolster working capital. Therefore the company has issued convertible unsecured loan notes through its broker Peterhouse Capital Ltd to raise GBP1.3 million.
In addition, Sabien will issue 2.50 billion warrants to subscribe for shares at a price of 0.1 pence per warrant. They will be granted to holders of the notes and can be exercised until January 19, 2022.
However, the group said it does not have authority to enable the full conversion of the notes or the placing warrants. Therefore Sabien will convene a general meeting in which it will propose being granted authority to allow for the conversion of notes and warrants.
"Whilst it is disappointing to have to withdraw from the proposed acquisition, I believe that shareholders will benefit from the restoration of Sabien's shares to trading and the impact which the convertible loan note issue will have on the continued development of the company's green technology," said Chair Richard Parris.
"The experience of the pandemic to date has shown that governments around the world are fully focused on a greener agenda. It is my belief that Sabien will contribute to the accelerated work towards a carbon neutral economy and that shareholders will benefit from this contribution," Parris added.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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