(Alliance News) - Shares in Alexander Mining PLC have been temporarily suspended from trading on Friday, as it said it is in advanced negotiations for the acquisition of eLight Group Holdings Ltd, an energy saving lighting firm.
Under the proposed deal, eLight shareholders will be issued six new shares in Alexander Mining for every one existing share in issue as consideration. As a result, eLight shareholders will hold 86% in the enlarged company, and Alexander shareholders the remaining 14%.
The acquisition will constitute a reverse takeover under AIM rules, and is conditional on gaining shareholder approval at an upcoming general meeting, and the raising of around GBP3 million through a placing.
To hold the general meeting, Alexander Mining must publish an AIM admission document, which is expected to take place in December.
Alexander Mining will also seek shareholder approval for the disposal of MetaLeach Ltd, and its other mineral technology processing assets.
Should the transaction go through, Alexander Mining will change its name to eEnergy Group PLC.
In addition, eLight Directors David Nicholl, Harvey Sinclair and Richard Williams will join the enlarged group's board, while the current directors of Alexander Mining except for Non-Executive Director Nigel Burton will resign.
"I am delighted that Alexander has been able to advance into rapid execution of the new strategy announced to the benefit of our shareholders. Simultaneously, having found a strong mining industry buyer for the company's MetaLeach business, as well as an attractive acquisition opportunity for the remaining shell, is fortuitous and satisfying for the board," said Chair Alan Clegg.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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