RE: PATH - not trading - DTU not off the mark yet7 Jul 2020 16:45
PATH - RNS out - change to our consideration for DTU & Kansas hydrogen. We no longer gain 15m free shares with 15m warrants. It's now all warrants in two tranches & PATH now have to issue a prospectus! So still not done....
https://www.lse.co.uk/rns/PATH/update-on-acquisition-bgehj4cb9tfdl4k.html
Tue, 7th Jul 2020 14:00
RNS Number : 2917S
Path Investments plc
07 July 2020
7 July 2020
Path Investments plc
("Path" or the "Company")
Update on Acquisition of DT Ultravert and Kansas Nitrogen Reserves
Path Investments plc (TIDM: PATH), the energy and natural resources investment company, is pleased to provide an update on the progress of its agreement with Zoetic International PLC ("Zoetic"), to acquire its 75% ownership of its patented proprietary technology, DT Ultravert ("DTU"), and the acquisition of its Kansas Nitrogen Reserves, its associated leases and equipment (together the "Transaction").
Further to the announcement dated 22 June 2020, Path has held a number of discussions with the Financial Conduct Authority ("FCA"). The result of those discussions is that it has been concluded that the Transaction is a reverse takeover under the Listing Rules and the current suspension on the Standard Segment of the Official List and on the Main Market of the London Stock Exchange will continue pending publication of a prospectus. The process of producing the required prospectus is underway and on publication of a prospectus the existing listing will be cancelled and the Ordinary Shares re-admitted to trading ("Readmission").
Following further discussions with Zoetic, the consideration for the Transaction has been slightly adjusted. This will now be satisfied by the issue by Path to Zoetic of 15,000,000 warrants to subscribe for ordinary shares in Path at any time from the first to the third anniversaries following completion at an exercise price of 0.75 pence per share, together with 15,000,000 warrants to subscribe for ordinary shares in Path at any time from the first to the third anniversaries following completion at an exercise price of 1.5 pence per share.
Additionally, Path has agreed to pay, in perpetuity, to Zoetic a royalty equal to 6% of all gross revenues derived from DTU, accruing from receipt of first revenues, although not payable until 12 months thereafter. Royalty payments will be settled quarterly, with payments being made at the end of the quarter in which Path earns revenue. For the avoidance of doubt, Path has no obligation to make a payment to Zoetic unless it has received the revenue payment from its own customers. Royalty payments due until the fifth anniversary of completion, at Path's discretion, may be settled as to 50 per cent. by the issue of new ordinary shares in Path, in which case the value of those ordinary shares will be based on the volume weighted average price over the 10 business days prior to the date of issue. Thereafter payments due will be settled in cash.
cntd..
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