Nu-Oil and Gas Plc (AIM: NUOG), the AIM Rule 15 cash shell, provides the following update to shareholders.
As a result of, inter alia, commodity price volatility over several months and, more specifically, the last few weeks, the Company is evaluating potential reverse takeover targets across all sectors and not solely in oil and gas, which had been the Company’s intended target space as announced on 11 October 2019.
The Company has particularly focused its efforts on the environmental industries sector and is pleased to confirm that it is in discussions with several potential targets. The Company is confident in its ability to close a reverse takeover transaction in this particular sector and believes that it would provide an opportunity for diversification of risk away from the hydrocarbons sector which continues to be severely depressed.
The Company believes that the environmental industries sector presents attractive growth prospects that are supported by national and international Government legislation, promoting further investment into the sector. Furthermore, the Company considers the recent UK Budget announcement in which the Chancellor of the Exchequer proposed a tax on all domestically-manufactured or imported packaging containing less than 30% recycled content from April 2022 as a clear example of policy reinforcing and supporting the Company’s revised strategy and future growth path.
As stated in the Company’s announcement dated 4 November 2019, the Company is required to make an acquisition (or acquisitions) which constitutes a reverse takeover under AIM Rule 14 within six months of that date, failing which the Company’s shares would be suspended from trading on AIM. If the Company’s shares were suspended, the Company would then have a further six months, with 4 November 2020 being the last possible date, to conclude a transaction prior to losing its status as a company admitted to trading on AIM.
It should be noted that there can be no certainty as to whether a transaction within the environmental industries sector will take place. The Company looks forward to updating shareholders as and when appropriate on the progress it is making.
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