Path Investments plc (LON:PATH), the energy investment company, announced today its interim results for the six months to 30 June 2021.
|•||Successful equity fundraising in March 2021|
|•||Conditional Reverse Takeover of DG Innovate Limited (“DGI”) announced.|
|•||Loss before tax £736,254 (H1 2020 loss before tax of £163,699)|
|•||Loss per share 0.04 (H1 2020 loss 0.08 per share)|
Commenting, Christopher Theis, Chief Executive of Path Investments, said : ” The first half of 2021 has been transformational for Path, both financially and strategically. We are very excited about our intended acquisition and welcoming the DGI business with its sustainable global energy technologies into Path.”
The strategy of the Company is focused on delivering a material acquisition in the energy sector with the objective of providing the Company’s shareholders with access to a low risk and, over time, diversified portfolio which can offer a dividend stream as well as offering development potential for capital growth.
In March 2021 the Company was delighted to receive the welcome support of new shareholders and certain existing holders in a fund raising with gross proceeds of £3.87 million received to accelerate the Company’s investment strategy. We said at the time that we were focussed on one opportunity and anticipated updating shareholders in due course.
Post the accounting period on 13th August 2021 we announced our conditional agreement to acquire DG Innovate Limited for £32 million to be satisfied by the issue of 5,342,051,305 Path Ordinary Shares of £0.001 each (“Path Shares”) at an issue price of 0.6 pence per Path Share, which compares favourably with the suspension price of 0.27 per Path share.
Further details of the transaction are contained on our website https://www.pathinvestmentsplc.com/proposed-acquisition-of-dg-innovate/
As part of the acquisition of DGI, and post the accounting period, Path provided from its cash resources a secured loan facility to DGI of £600,000. The facility was made available in two tranches, both of which have now been released to DGI.
Work is progressing towards completion of the proposed transaction which constitutes a reverse takeover under the Listing Rules, as it will result in a fundamental change in the business of the Company. We are making good progress on finalising the necessary prospectus and shareholder documentation and we expect to be submitting it shortly for FCA approval.
The transaction is also subject to waiver of Rule 9 of the Takeover Code by the Takeover Panel and therefore the approval of Path’s independent shareholders at a General Meeting which will be convened for the purpose.
We look forward to updating shareholders further as we move towards completion of our transaction.