Cykel AI PLC has struck a deal to move from Aquis to the main market of the London Stock Exchange by reversing into special purpose acquisition company (SPAC) Mustang Energy PLC (LSE:MUST).
The boards of the two companies said they have agreed non-binding heads of terms for Mustang to acquire Cykel on the basis of 1.844 new Mustang shares for each Cykel share.
This valued Mustang at £1 million and Cykel, which raised £1.75 million when it floated on Aquis in October, at £19.22 million, based on 10-day average prices up to 7 November, when the proposed acquisition was first agreed.
Under transitional changes to the listing rules by the FCA from 2021, SPACs are not required to have a minimum market capitalisation of £30 million as they did previously.
A prospectus is currently being reviewed by the Financial Conduct Authority and is expected to be published in the second quarter of 2024.
Under London takeover rules Mustang must announce a firm offer by 15 February.
Cykel is developing an artificial intelligence (AI) co-pilot to take over repetitive digital tasks for businesses, which it calls its AI-Powered Task Operating System, or Task OS.
Last month, it launched a 'beta' version of Task OS, which it called an "important step forward in the field of task management [that] signifies a significant milestone for the company and its commitment to redefining productivity and efficiency".