3 Feb 2022 07:00
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (MAR), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.
3 February 2022
Verditek Plc
("Verditek" or the "Company")
Sale of Investment in ICSI
Verditek Plc (AIM:VDTK), the international green technology company that develops, manufactures and sells lightweight solar panels, is pleased to announce the completion of the sale of Industrial Climate Solutions Inc ("ICSI")* on 1 February 2022, in which the Company held a 10.56% stake, to Baker Hughes Energy Services Canada, Inc. An initial payment of approximately £308,000 was received by the Company in line with the size of its holding.
The initial consideration was received in cash on 2 February 2022 and further contingent proceeds to the Company of up to approximately CAD 3 million (c. £1.75 million) may arise dependent upon certain milestones being met. The Directors are taking a prudent view on the likelihood of further receipts, subject to the requirements of relevant accounting standards. The Company will therefore recognise fair value of its investment of approximately £0.9 million in its statement of financial position at 31 December 2021. This valuation is subject to auditor review.
This equity investment was recognised in the Company's audited annual report for the year ended 31 December 2020 at £23,405 and subsequently at £23,091 in the Company's unaudited interim results for the six months ended 30 June 2021. The Company's investment in ICSI was impaired in 2018, on the basis that ICSI was loss making and had net liabilities.
The sale will enable the Company to realise value from its investment for use in its core operations. Cash received will be used to provide working capital for Verditek's solar power business.
It is the Company's understanding that ICSI has reached out or will reach out to its key partners to notify them of Baker Hughes' purchase and to advise on ICSI's ongoing technology developments within Baker Hughes' portfolio. The Company wishes the parties all the best in their endeavours.
For further information:
Verditek plc
Rob Richards, CEO Tel: +44 (0)20 7129 1110
Vicki Johnson, CFO
WH Ireland Limited - NOMAD and Broker
Chris Hardie Tel: +44 (0)20 7220 1666
Ben Good
About Verditek plc:
AIM listed Verditek plc is a holding company of a business operating within the green technology sector. The Company is focused on commercialising our lightweight low-profile solar panel business. With manufacturing based in Lainate Italy, we have developed renewable power solutions for our customers, that drive solar energy into applications previously unachievable. The exceptional properties of our solar panels replace diesel fuel in business such as perishable goods transport, off-grid telecommunication towers, electric vehicle charging stations, residential and holiday home power solutions and solar roofing for light-weight industrial roofing. In addition to our current PV panels in production, we have partnered with an outstanding leader in graphene technology, Paragraf. We are working together to engineer the technology for commercialisation.
Verditek provides compelling commercial solutions that help to make our customer's businesses sustainable.
*ICSI background:
ICSI is a company that develops industrial process technology used in carbon capture and other industrial processes. The Company's subsidiary, Verditek USA Limited, acquired a 23.64% share in Westec Environmental Solutions LLC in 2017. The assets of Westec Environmental Solutions LLC, were bought by ICSI in December 2018. Following the sale, the Company's subsidiary acquired a 22.34% stake in ICSI. Over time the Company's stake in ICSI has been diluted by share issues from convertible loans.
For more information please visit: https://verditek.com/