Advance Energy PLC (AIM:ADV) has confirmed that it has entered into a non-binding agreement with the majority owner of a European oil and gas company, for a reverse takeover.
It is a heads of terms agreement which includes standard conditions and an exclusivity period running until October 29 to allow the completion of due diligence.
The company noted that the agreement anticipates that the deal consideration would comprise the issue of new shares and an earn-out based on oil production.
Advance Energy shares were suspended temporarily from trading on the London Stock Exchange this morning, and, will remain suspended until the company is in a position to publish the associated AIM admission document for the potential acquisition.
“In the event that the potential acquisition does not proceed for whatever reason, it is expected that the temporary suspension in the company's shares would be lifted,” the company said.
“It should be noted there is no certainty that the potential acquisition, or any transaction, will take place.”