Bushveld Minerals Limited (AIM:BMN, OTC:BSHVF) told investors that VRFB Holdings Limited (VRFB-H) has entered into a conditional agreement with Garnet Commerce and Mustang Energy which will see VRFB-H acquire a 50% interest in Enerox Holdings.
The consolidation is part of a process through which Bushveld expects to ‘carve out’ the company to become an “entity focussed on the VRFB value chain”. This process is expected to be completed during the second half of 2023, Bushveld added.
Once the corporate manoeuvring is complete Mustang Energy will own 100% of VRFB-H, which will in turn own 100% of Enerox.
According to Bushveld, the transactions will simplify the ownership structure and will allow investors greater transparency of value for the underlying energy storage assets.
It is expected that Bushveld will retain an ownership stake in Mustang of 21% to 23% depending on the amount of funds raised by Mustang.
"I am pleased to announce today's transaction, another step in simplifying and consolidating the ownership structure of this exciting energy storage platform,” chief executive Fortune Mojapelo said in a statement.
“As mentioned previously and with the commitment of its investors, this series of transactions provide Enerox and its CellCube brand access to the capital markets, the ability to achieve a transparent market value and attract energy-focused investors looking to participate in this exciting growing sector.
“As we have communicated in recent months, we feel this is the right time for this emerging energy storage story to take on a life of its own, while still keeping an interest in the business and most importantly maintaining our vertically integrated business model," Mojapelo added.