What does the company do?
Nu Oil & Gas Plc (LON:NUOG) is in the process of a reboot.
It was formerly an oil and gas company focussed on novel approaches to the development of marginal fields. In late 2019, following a third-party acquisition of the company’s debt, the London-listed group has been reduced effectively to a cash shell.
Legacy management departed and legacy assets were divested.
Interim funding was introduced by C4 Energy Ltd, the vehicle that acquired the debt back in October.
Following a period in which the company explored new opportunities the company, in April, revealed an agreement to acquire a plastic recycling business.
How is it doing?
On 14 April, the company confirmed its new direction, announcing a reverse transaction into a “well established” plastics recycling and reprocessing business.
The company, which launched the process a number of months ago amid comprehensive management changes, said the intention is that the new vehicle will act as a consolidator in the sector.
It has so far entered into a non-binding heads of terms agreement for the transaction, which will see up to £60,000 of fees to paid to the counterparty.
The company noted that the proposed acquisition will bring with it a new chief executive with significant experience in the “exciting and socially important sector”.
In London, the company’s shares are now suspended from trading on AIM, as is customary for reverse takeovers, until either an admission document is published or an announcement is released confirming that the proposed acquisition will not proceed.
The transaction remains subject to completion of due diligence, an agreement over the definitive documentation, regulatory clearance, and shareholder approval.
What management says
"We are delighted to have entered into heads of terms to acquire a business that would be transformational for Nu-Oil,” said chairman Jay Bhattacherjee said in a statement.
“Today marks the first step towards delivering on the company's refocused strategy of increasing value for shareholders by targeting acquisition opportunities in the environmental industries sector."