Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
Verditek inks preliminary deal to offload solar business
(Sharecast News) - Verditek announced on Wednesday that it has reached a preliminary agreement to sell its solar business in a deal involving the establishment of a new company, 'Newco', by the holders of its secured convertible loan notes. The AIM-traded firm said the proposed transaction would involve the sale of the solar business for £0.53m, to be satisfied through the surrender of the notes, along with an additional £50,000 in cash on completion.
As part of the transaction, the company said it would transfer its shareholder loan to Newco for nominal consideration on completion.
The bondholders had further agreed to provide a loan facility of up to €0.1m to fund the operating expenses of the solar business, effective from 6 February, subject to prior written agreement.
Verditek said the bondholders had been granted exclusive negotiating rights until 29 February, with completion of the proposed transaction conditional on further due diligence, the agreement of definitive sale and purchase documentation, and shareholder consent.
On completion of the sale, Verditek said it would be classified as a cash shell under the AIM rules, necessitating the acquisition of new assets within six months to avoid the cancellation of trading on AIM.
Discussions were underway with a prospective new management team to raise £0.3m and pursue a reverse takeover within the specified timeframe.
Nevertheless, there was no guarantee that the proposal would proceed as planned.
The board said the solar business to be sold included the issued share capital of Verditek Solar Italy (VSI), associated intellectual property rights, interests in the net zero valley term sheet and related memorandum of understanding with SerendipEquity Manco, and the joint development project with Paragraf, among other assets.
In terms of assets, the interim accounts for the first half of 2023 showed £0.11m in plant and machinery and £0.7m in stock and inventory belonging to VSI.
Additionally, the company holds an ICSI bond at a historic book value of £0.56m.
Gavin Mayhew, a former non-executive director of the company and a bondholder, is involved in the transaction, constituting a related party transaction under the AIM rules.
The current directors, after consultation with the company's nominated adviser WH Ireland, believed the terms of the disposal and the loan agreement were fair and reasonable for shareholders.
Verditek said it would issue a circular to shareholders shortly, providing further details on the proposed transaction and seeking shareholder consent at a general meeting for the disposal, and granting authority for the directors to issue further shares.
At 1327 GMT, shares in Verditek were down 32.66% at 0.1p.
Reporting by Josh White for Sharecast.com.
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity, Equity & Inclusion | Doing Business with Fidelity | Diversity, Equity & Inclusion Reports | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Staying secure | Statutory and Regulatory disclosures | Whistleblowing programme
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.