LONDON (Alliance News) - Glenwick PLC on Thursday said it will either look to make a reverse takeover in addition to its planned investment in i3 Energy or wind up the company once it has distributed its holding in i3 to its shareholders.
Glenwick said it plans to convert its loan note into shares in i3 Energy after the company has listed on AIM through an initial public offering, rather than before floating as originally planned.
Glenwick is a natural resources investment company and agreed to invest GBP1.1 million into i3 Energy through a pre-IPO convertible loan note back in September. However, Glenwick will now convert the loan into shares after i3 has completed its IPO.
As part of the standard process for a UK North Sea acquisition, i3 is awaiting final consent from the UK Oil & Gas Authority. Once approved, i3 will launch its IPO to raise funds to develop its UK North Sea assets.
"Following the proposed i3 IPO, the company will convert its loan into i3 shares and will seek to distribute those shares by way of dividend back to Glenwick shareholders," Glenwick said Thursday.
"As the i3 pre-IPO investment will not constitute the implementation of the company's investing policy, as the company has not completed an acquisition or acquisitions which constitute a reverse takeover under the AIM Rules, the company may also seek to complete an additional acquisition constituting a reverse takeover, and the company is currently conducting due diligence on various potential targets," Glenwick added.
"Alternatively, the company may seek an orderly and solvent winding up of the company in accordance with AIM rule 41 following the distribution to Glenwick shareholders of the holding in i3," said Glenwick.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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