Investment in VRFB Holdings Limited – Update
09/08/2023 13:24
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RNS Number : 8336I Mustang Energy PLC 09 August 2023
For immediate release
9 August 2023
Mustang Energy PLC
("MUST" or the "Company")
Investment in VRFB Holdings Limited ("VRFB-H") - Update
Mustang Energy PLC (the "Company"), the special purpose acquisition company,
advises that pursuant to the Investment Agreement between the Company and
Bushveld Minerals Limited ("BMN") dated 26 April 2021 (as amended) if the
Company's shares had not been readmitted to trading on the London Stock
Exchange's Main Market for listed securities ("Readmission") by 31 July 2023,
the holders of the Company's convertible loan notes ("CLN") will be able to
effect the backstop arrangements previously agreed between the Company and
BMN.
The backstop arrangements would result in the issuance to each CLN holder of
such number of new ordinary shares in Bushveld at a price equal to the 20-day
volume weighted average price of a new Bushveld ordinary share prior to the
date of issue as is equivalent to the principal amount together with all
accrued and unpaid interest thereon.
On completion of the redemption process described above Mustang will transfer
its 22.1% interest in VRFB-H and novate its rights under the USD$2.0 million
loan made to Enerox GmbH to BMN. On completion of the Company transferring its
interest, VRFB-H will be wholly owned by BMN and Acacia Resources Limited
("Acacia"). Acacia is also the Company's largest shareholder with a 24.1%
interest.
It is intended that payment of the backstop fee will be deferred until
Readmission takes place and will be settled in Mustang shares at an issue
price of 20 pence per share.
The Company has entered into negotiations with the shareholders of VRFB-H,
being BMN and Acacia, in respect to renegotiating the terms under which the
Company would acquire their interests in VRFB-H. Based on a successful
conclusion of those negotiations it is the intention of the Company to proceed
to Readmission based on this acquisition.
Further updates will be provided when definitive and binding agreements are
executed.
ENQUIRIES
For further information, please visit www.mustangplc.com
(http://www.mustangplc.com/) , follow us on Twitter @Mustang_Plc
(https://twitter.com/Mustang_Plc) , or contact:
Mustang Energy PLC
Dean Gallegos, Managing Director
dg@mustangplc.com
+61 416 220 007
This announcement contains inside information for the purposes of the UK
Market Abuse Regulation and the Directors of the Company are responsible for
the release of this announcement.
END
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