Cellular Goods PLC (LSE:CBX) said it has completed the all-paper acquisition of King Tide Carbon, which will see the health and wellness firm move into the area of carbon sequestration.
Investors were told: “This diversification of its portfolio is aimed at generating long-term shareholder value while still realising latent growth in the cannabinoid sector.
“The acquisition of King Tide, with its deep industry expertise, is a perfect fit for this strategic direction, and together, the companies are committed to seizing the opportunities that lie ahead.”
Cellular issued 95mln shares – worth 0.62p each currently – to buy the Singapore-based group from its sole owner Matthew Lodge, who has become a non-executive director of the newly enlarged business.
He said: "Through this partnership, we intend to introduce a ground-breaking carbon removal solution that is both scalable and of top-notch quality, contributing to our shared goal of addressing the pressing challenge of our time - climate change."
King Tide’s algal biotechnology captures excess carbon from the upper ocean and stores the greenhouse gas.
It defines its mission as providing sustainable carbon removal credits to support global efforts towards achieving net-zero carbon emissions by 2050.
“We believe that this highly skilled and knowledgeable team should make a valuable contribution to drive the business division forward,” said Cellular’s interim chairman and CEO, Darcy Taylor.
“Their extensive expertise in their domain provides us with confidence that they will bring invaluable insights and innovative strategies to help Cellular Goods achieve our objective of increasing shareholder value."