(Alliance News) - Mustang Energy PLC and Cykel AI PLC made joint announcements of the proposed acquisition on Friday.
The London-based special purpose acquisition company focused on energy storage and stationary battery assets entered into non-binding heads of terms deal for the entire share capital of artificial technologies firm Cykel.
In exchange, the company will exchange 1.84 of new Mustang shares for each Cykel share. The ratio, calculated on the basis of GBP1.0 million of Mustang, values Cykel at GBP19.2 million based on its 10-day average in November.
A draft prospectus for the acquisition, which constitutes a reverse takeover, has been filed with the UK financial conduct authority, and the companies expect to publish the prospectus during the second quarter of 2024.
The scheme is also conditional upon approval from both Cykel and Mustang shareholders, as well a high court sanction and relevant regulatory approvals.
However, Mustang said that the heads of terms deal does not guarantee that an offer will be made for Cykel, even if the above preconditions are satisfied. The company said that a further announcement will be made "in due course".
Shares in Mustang have been suspended at 30.60 pence each since 2021.
Cykel AI shares were suspended at 9.18 pence each on Thursday ahead of Friday's announcement.
By Hugh Cameron, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2024 Alliance News Ltd. All Rights Reserved.
Mustang Energy (MUST)