Velocys receives discounted takeover approach
Sharecast
Published Nov 20, 2023 10:49
Updated Nov 20, 2023 11:11
Velocys receives discounted takeover approach
Sharecast - The company said the consortium has offered 0.25p a share, valuing the business at £4.1m.
The offer includes the intention for the consortium to provide "significant" funding for Velocys to meet its long-term growth capital needs. In addition, Velocys said it is in talks with the consortium regarding near-term funding.
However, it also noted there can be no certainty that an offer will be made, nor as to the final terms of any offer, if made.
Velocys PLC (LON:VLSV) said that notwithstanding the possible offer, there are currently no binding arrangements in place for near-term funding.
"The company continues to explore cost control and other measures to extend the cash runway, however, at present, in the event that the possible offer (including near-term funding) does not progress shortly, and in the absence of other meaningful sources of funding or strategic options, it is currently unlikely that the company will be able to continue as a going concern beyond the end of December," it said.
As a result, Velocys is still exploring its options, including the possible sale of the company.
At 1045 GMT, the shares were down 60% at 0.28p.
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