Aura Renew Acq Regulatory News (ARA)

Aura Renewable Acquisitions plc

("Aura" or "Company")

This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014 which forms part of domestic UK law by virtue of the European Union (Withdrawal) Act 2018, as amended. Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

Not for release, publication or distribution in whole or in part, directly or indirectly in, into or from any jurisdiction where to do so would constitute a violation of the relevant laws or regulations of such jurisdiction.

Annual Results and Likely Extension of Acquisition Criteria

16 April 2025 - Aura Renewable Acquisitions plc, a UK-based company formed to build shareholder value by investing in the global renewable energy supply chain, announces its results for the year ended 31 December 2024.

The Company has continued to seek suitable acquisition and investment targets while operating with minimal overheads following its admission to the Standard Segment of the Main Market of the London Stock Exchange in April 2022, raising gross proceeds of £1,000,000 from a placing and subscription. The Company has incurred a loss before taxation of £185,000 for the financial year ended 31 December 2024 (2023: £153,000). At 31 December 2024 the Company had cash resources of £486,000 (2023: £661,000).

Aura was established to acquire then act as the holding company for targeted businesses operating in the Global Renewable Energy Sector Supply Chain, particularly participants in the battery, wind, solar, biomass, hydropower, carbon capture, waste management, smart grids and green hydrogen supply chain, and their sub-sectors.

During the year the board has met and assessed potential acquisition targets in the UK and overseas and, on 9 December 2024, Aura announced that it had entered into heads of terms with Zero Carbon Capital Limited ("ZCT"), a UK incorporated company with planned battery recycling operations in Europe, which set out the key terms for Aura to acquire 100% of the issued share capital of ZCT. Following the announcement of the proposed transaction and at the request of Aura, the Financial Conduct Authority suspended Aura's listing on the Official List and trading on the Main Market of the London Stock Exchange was also suspended. 

On further consideration, the board concluded that it would not be in the best interests of the Company's shareholders to pursue the proposed acquisition and notified the market on 15th April 2025 that it had given notice to ZCT that the heads of terms and the discussions relating to the proposed transaction were terminated. Minimal external due diligence costs have been incurred this potential transaction. In light of the termination of the heads of terms, the Company applied to have the suspension lifted and trading in the Company's shares will recommence at 7.30 am on 16th April 2025.

The board continues to maintain a pipeline of other potentially significant targets despite the economic and political uncertainty caused by supply chain issues, inflation, interest rate rises, and hostilities in Europe and further afield, which continued to restrict capital market activity during 2024. At the time of writing, capital markets around the World have been destabilised by the US Government's introduction of significantly increased tariffs. It will take time for market sentiment to settle on a clear view of likely future global trading and investment flows. This uncertainly will bring risk but should also bring opportunities. Looking at fundamentals, possible interest rate reductions on the back of lower inflation figures should have a positive impact on markets.

Pathways to a greener future adopted by the UK and other governments remain an issue for public and political debate at a time of economic and geopolitical uncertainty. Clearly some prospective targets and their business models are likely to be more resistant to external risk than others. It remains our approach that any acquisition will take full account of a developing regulatory and political environment and any potential associated risks.

We remain confident that where disruptive technologies are not only cleaner but more competitive than incumbent processes, the renewable energy sector will offer excellent opportunities for acquisitive and organic growth.

In addition, the board is actively considering widening the Company's stated acquisition criteria beyond the global renewable energy sector supply chain in order to expand the range of potential acquisition targets. In particular, the board is looking at other industries which are also characterised by strong macro-economic fundamentals and with incumbents subject to disruptors enabled by new technologies and AI, and new entrants able to grow their businesses through acquisition and consolidation. Further details of any change in the acquisition criteria will be shared with investors in due course.

I would like to thank my fellow board members and our advisers for their assistance in this important stage of the Company's development and look forward to providing an update on progress in due course.

John Croft, the Chairman of Aura, commented:

"The board has maintained close connections with potential business introducers from within the Board's professional and business networks. By reinforcing the board's intentions and objectives to these potential introducers of opportunities, we have maintained a pipeline of potential targets.

We believe our strategic approach to finding the right transaction, while closely controlling overheads, will prove successful."

Publication on website

A copy of this announcement is also available on the Company's website at http://www.aurarenewables.com.

Enquiries

Aura Renewable Acquisitions Plc  

Media enquiries

LEI: 894500XA241IB9HL7147

Notes to Editors

Aura was established to acquire and then act as the holding company for targeted businesses operating in the Global Renewable Energy Sector Supply Chain, particularly participants in the wind, solar, biomass, hydropower, carbon capture, waste management, smart grids and green hydrogen supply chain, and their sub-sectors.