18th Mar 2016 09:38
LONDON (Alliance News) - Opera Investments PLC on Friday said it has agreed to amend the terms of its reverse takeover deal for SoloPower Systems Holdings Inc after struggling to raise the necessary financing for the deal.
Opera agreed in July last year to acquire SoloPower, a US-based solar energy company, via a GBP220.0 million reverse takeover deal with Hudson Clean Energy Partners, a US private equity firm.
Opera, Hudson, SoloPower and its financial advisers have been working to secure the equity financing needed to complete the deal, Opera said, but the volatility in markets in recent months has meant this will not be possible.
As a result, Hudson was asked to provide a substantially larger level of financial support but was unprepared to do this. However, Opera said Hudson has indicated an interest in continuing to pursue the acquisition, albeit using a different structure which would complete a financing for SoloPower using debt and warrant issues.
As a result of this, Opera has amended the agreement with Hudson to allow Hudson to complete a financing of SoloPower without an exclusive requirement for the acquisition to take place at the same time.
In addition, the amendments state that if Hudson decides to list the SoloPower business by May 15, the listing would take place on an exclusive basis with Opera on the same terms as the original reverse takeover agreement.
If an agreement to list SoloPower does not take place by May 15, the acquisition agreement will be terminated, Opera said.
Opera said it was aware of the need for an effective use of its cash resources and of how long the agreement was taking to complete.
Opera shares are currently suspended.
By Sam Unsted; [email protected]; @SamUAtAlliance
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