Alteration Earth PLC has recently announced that the company has entered into non-binding heads of terms to acquire the entire issued share capital of Verdant Earth Technologies Limited.

Background to the Proposed Acquisition (As stated in the announcement)

'The Company was established as a 'special purpose acquisition company' with the objective of acquiring a company, business, project or asset in the clean technology and/or clean energy sectors, as outlined in its prospectus published on 17 June 2022, a copy of which can be found on the Company's website at the following link: https://altearthplc.com/publications/.

The Proposed Acquisition is in line with the Company's acquisition strategy.

The Company yesterday entered non-binding heads of terms for the acquisition of 100% of the issued share capital of Verdant. The proposed transaction value is £125 million (the "Purchase Price"). The Purchase Price, which shall be finalised subject to the completion of due diligence and agreement between the parties of the valuation of the enlarged group, shall be satisfied by the issue of new ordinary shares in the capital of the Company.

The Proposed Acquisition, if completed, will be accompanied by a placing of new shares by the Company to raise equity capital (the "Placing") to fund the working capital requirements of the enlarged group, details of which will be announced in due course. The Proposed Acquisition, if completed, will result in the shareholders of Verdant having a majority interest in the enlarged group.'

The announcement further states: 

'It is currently expected that should the Proposed Acquisition proceed, the prospectus will be published, and the Proposed Acquisition will complete, during Q4 2023.

The Company has engaged certain advisers, and will engage other professionals, to rapidly progress the requisite due diligence and the preparation of transaction documentation including the SPA and the prospectus.

At this stage, there can be no guarantee that the Proposed Acquisition will complete nor as to the final terms of the Proposed Acquisition. Further announcements and updates will be made in due course.'

 

Matthew Beardmore, Director of ALTE, commented:

"This is a very exciting opportunity to bring an asset backed, renewable energy business with a clear, scalable, and deliverable growth plan to the public markets. The Verdant business aligns perfectly with ALTE's ambition to change the way we use earth's resources for the better."

"We look forward to closing the transactional elements and then supporting Verdant with its plans to deliver the business model in multiple countries and jurisdictions."

Richard Poole, CEO of  Verdant Earth Technologies, stated:

"Global energy grids are in turmoil as they adapt to the introduction of intermittent renewable energy coupled with the retirement of baseload fossil fuels. Verdant's modern leading approach to bioenergy to deliver projects with negative CO₂ profiles with long term carbon sinks and net zero, 24/7 dispatchable power (the "Verdant System") provides an exciting green solution and alternative to fossil fuel baseload power ensuring that the lights stay on."

"We're excited to begin the next chapter of our development with the impending restart of Redbank and the opportunity to aggressively grow by replicating our Verdant System, negative CO₂ profile modern bioenergy strategy globally. The proposed transaction with ALTE reflects our shared vision to bring to market new reliable renewable energy infrastructure to address future global energy needs."

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