Termination of DTU Acquisition

RNS Number : 1470P

Path Investments plc

15 February 2021

 

15 February 2021

Path Investments plc

("Path" or the "Company")

Termination of DTU Acquisition and Restoration of Trading

Path Investments plc (TIDM: PATH) , the energy and natural resources investment company, announces the termination of the proposed transaction to acquire DT Ultravert ("DTU"), a technology used in the energy industry, from two vendors, including Zoetic International plc ("Zoetic") (the "Transaction").

As previously announced, completion of the Transaction was subject, inter alia, to the publication of a prospectus by Path prepared in accordance with the Prospectus Regulation Rules made under section 73A of the Financial Services and Markets Act 2000 (as amended) and approved by the UK Financial Conduct Authority ("FCA") under section 87A of Financial Services and Markets Act 2000 (as amended) and re-admission of the Company's shares to trading on the Main Market of the London Stock Exchange.  Concerns raised regarding the Transaction during the preparation of the prospectus and also recent press speculation brought to the Board's attention concerning Zoetic have led the Board to question the merits of continuing with the Transaction as they consider it may pose unnecessary risk to the Company and its shareholders.  As a result, the Board has terminated the Transaction with immediate effect.

Path has been undertaking market soundings (as defined in MAR) in connection with an equity fundraise to support its continuing investment strategy (as outlined in the Company's prospectus published in March 2017), together with the proposed acquisition of DTU.  This was only a small part of the Company's overall strategy to acquire energy assets and the Directors remain focussed on pursuing opportunities in line with the Company's investment strategy.  It remains the Company's intention to complete a fundraise for what is currently anticipated to be a gross amount of approximately £2 million in the form of equity to allow it to meet its working capital requirements and further its investing strategy.  However, there is currently no certainty of the structure, quantum or that the fundraise will be completed.  The proposed fundraise would require the publication of a prospectus as more than 20% of its existing ordinary share capital would be issued and admitted to trading.  This is currently being prepared, and further announcements will be made as appropriate in due course.

Restoration of Trading

Following the termination of the Transaction, it is expected that Path's ordinary shares will resume trading on the Main Market of the London Stock Exchange in due course following consultation with the FCA.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

For further information please contact:

Path Investments plc	C/O IFC
Christopher Theis
Jack Allardyce
IFC Advisory (Financial PR & IR)	020 3934 6630
Tim Metcalfe
Zach Cohen
Grant Thornton UK LLP (Financial Adviser) Jamie Barklem Samantha Harrison Harrison Clarke	020 7383 5100
Keith, Bayley, Rogers & Co. Limited (Broker)
Brinsley Holman	07776 30 22 28
Graham Atthill-Beck	07506 43 41 07

 

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