Alexander Mining to become eLight Group via reverse takeover

Alexander Mining announced the proposed acquisition of ‘energy efficiency-as-a-service’ company eLight Group Holdings on Friday.

The AIM-traded firm said the consideration for the acquisition would be £6.6m, to be satisfied by the issue of consideration shares.

It said the acquisition, which remained subject to shareholder approval, would constitute a reverse takeover under the AIM rules.

Upon completion, the company would trade under the name of eEnergy Group, and its new ticker symbol would be ‘EAAS’.

The company also announced that it had conditionally raised £2m before expenses through a placing of 26,666,667 new ordinary shares at 7.5p each, which would be used to finance the development of eLight and for working capital.

“It is pleasing that despite the challenges embedded in the uncertainty of the UK investment landscape up to the foundational Brexit general election result, that the board and our advisory team have managed to both find an acceptable buyer for the MetaLeach assets, conclude an appropriate sale and purchase agreement, and complete all the necessary conditions for the reverse takeover while raising an acceptable level of new equity funds to proceed with the conclusion of this transaction,” said chairman Alan Clegg.

“We remain fully convinced that the resultant divergent paths created for MetaLeach and the listed shell are the right ones for the realisation of value for both old and new shareholders alike.”