Challenger Acquisitions Limited Potential RTO and suspension of listing (5105W)
19 Agosto 2020 - 1:30AM
UK Regulatory
TIDMCHAL
RNS Number : 5105W
Challenger Acquisitions Limited
19 August 2020
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR
INDIRECTLY, WITHIN, INTO OR IN THE UNITED STATES, AUSTRALIA, CANADA
OR JAPAN.
For immediate release 19 August 2020
Challenger Acquisitions Limited
("Challenger" or the "Company")
Potential reverse takeover and suspension of listing
Challenger Acquisitions Limited (LSE: CHAL) is pleased to
announce that it has entered into a Letter of Intent ("LOI") with
Cindrigo Limited ("Cindrigo") and Cindrigo Energy Limited, which
are part of a group of companies pursuing renewable energy projects
built on broad Swedish expertise and experience in the waste to
energy and biomass energy sector (see www.cindrigo.com).
The LOI contemplates Challenger making an offer ("Offer") to
acquire all of the shares of Cindrigo, subject to completion of a
reorganization between Cindrigo and its holding company, Cindrigo
Energy Limited, which requires court approval in Canada. The making
of the Offer would trigger the assumption by Cindrigo of the costs
of implementing the transaction and obtaining readmission of the
Company's shares to the Official List and the Main Market of the
LSE along with certain of the overheads and creditors of
Challenger, subject to a cap of GBP560,000. To support this
obligation, Cindrigo is obliged to make an initial payment of
GBP450,000 into the client account of the lawyers for
Challenger.
On the making of the Offer, Cindrigo will be entitled to appoint
two directors to the board of Challenger at which point two of the
existing directors will step down. It has been agreed that the two
remaining directors of Challenger will step down if requested at
any time to do so by Cindrigo.
The consideration payable under the Offer will be the issue to
Cindrigo shareholders of shares and/or convertible loan notes of
Challenger such that, following completion, and conversion of the
convertible notes issued as part of the consideration, the existing
shareholders of Challenger together with the Company's existing
holders of convertible notes will between them hold 3% of the share
capital.
The current board of Challenger has unanimously approved the LOI
and there is, subject-to-contract, agreement between the Company
and all the convertible noteholders to facilitate this
transaction.
Should the Offer complete, it would constitute a Reverse Take
Over ("RTO") under the Listing Rules. Therefore, at the request of
the Company the FCA suspended the Company's listing on the standard
segment of the Official List and trading on the Main Market of the
London Stock Exchange has also been suspended pending either a
further announcement on specific details of the RTO, the
publication of a prospectus, or an announcement that the RTO is not
proceeding.
The Board of the Company will update the market further as and
when necessary.
Mark Gustafson, Challenger's Chief Executive Officer, said,
"This is a very positive development for the Company. Our board has
worked relentlessly throughout late 2019 and this year to secure an
appropriate RTO opportunity. We will now work actively with
Cindrigo towards the making and completion of the Offer."
**ENDS**
For more information visit www.challengeracquisitions.com or
enquire to:
Challenger Acquisitions Limited
Mark Gustafson +1 604 454 8677
St Brides Partners Ltd (PR)
Cosima Akerman +44 (0) 20 7236 1177
This information is provided by RNS, the news service of the
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END
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(END) Dow Jones Newswires
August 19, 2020 02:30 ET (06:30 GMT)
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