Technology Minerals PLC (LSE:TM1) told investors that it won’t proceed with its proposed merger with battery recycling business Recyclus Group Ltd at the current time.
The companies said the decision was ‘because of the reverse takeover re-admission requirements of the London Stock Exchange’.
The rethink comes as the companies seek better market conditions.
Meanwhile, Technology Minerals said it does not believe its share price reflects the value of its holding in Recyclus, and that shareholders' interests are best served by not continuing with the merger at this point.
At Recyclus, which is already 49% owned by Technology Minerals, the business is seeing increased commercial activity as it continues ramping-up production at its first lithium-ion recycling plant.
Recyclus is also in advanced discussions with several new potential industry and financial partners from the UK and global organisations to provide additional financial flexibility to support its development plans, the company noted.
"Technology Minerals is excited by the recent developments at Recyclus and fully supportive of its growth plans and the potential for new partners alongside the company,” Technology Minerals chair Robin Brundle said in a statement.
“We intend to revisit our merger strategy when market conditions improve and it is beneficial to shareholders."