9th Dec 2024 12:06
(Alliance News) - Aura Renewable Acquisitions PLC on Monday said it has agreed its first deal, buying a UK company with plans for battery recycling operations in Europe, starting in Spain.
Aura Renewable is a London-based acquisition vehicle for businesses operating in the renewable energy sector. Its shares were suspended from trading on the London Main Market on Monday, as completing the acquisition will mean a change in its listing category to 'commercial companies' from 'shell companies'.
The target company is London-based Zero Carbon Technologies Ltd, which was founded in 2021 to recycle lead-acid and lithium-ion batteries, using technology partially licensed from Cambridge University. ZCT aims to recycle electric vehicle batteries, recovering black mass containing copper, lithium, cobalt, manganese and nickel.
As part of the agreement with Aura Renewable, ZCT will raise a minimum of GBP10 million in new capital at a valuation for the entire company of GBP30 million. The funds will be used to commission two recycling facilities in La Mancha province, Spain.
Aura said that as part of this plan, ZCT has agreed a combination with Spanish firm Clean Tech Lab SL, which would be completed before ZCT's acquisition by Aura Renewable.
For its part, Aura Renewable will raise GBP1 million to GBP2 million from a share issue. Aura Renewable will be valued at 10% of the value of the merged group, excluding the proceeds of the equity raises by ZCT and Aura Renewable. At its share price of 4.99 pence prior to the suspension of trading, Aura Renewable had a GBP446,250 market capitalisation.
Aura Renewable said the two companies have agreed a period of exclusivity to complete a final agreement, but said there is no certainty that the acquisition will be completed.
By Tom Waite, Alliance News editor
Comments and questions to [email protected]
Copyright 2024 Alliance News Ltd. All Rights Reserved.