Aquis-listed Cykel AI PLC (AQSE:CYK) has officially agreed to merge with special purpose acquisition vehicle Mustang Energy PLC (LSE:MUST) in a deal that will see the combined entity advance to the main market of the London Stock Exchange.
Cykel shareholders will receive 1.911 new Mustang shares for every Cykel share.
The deal values Cykel at approximately £19.22 million, representing a 1.3% premium to Cykel's closing price before the suspension of trading on 18 January.
Mustang’s board will resign upon completion of the deal and Cykel’s directors will assume leadership roles in the combined group.
The new entity will be listed on the Main Market of the London Stock Exchange, with Mustang’s shares ceasing trading on the AQSE Growth Market.
Cykel floated on the Aquis challenger market last October, raising £1.75 million.
Cykel's co-founder and executive chair Jonathan Bixby a Canadian serial entrepreneur behind Aquis-listed NFT Investments. He co-founded of Argo Blockchain, Guild Esports and Cellular Goods.