Mustang Energy set to acquire interest in Enerox

Mustang Energy PLC - London-based special purpose acquisition company focused on energy storage and stationary battery assets - Enters into conditional agreement with Garnet Commerce Ltd and VRFB Holdings Ltd under which VRFB Holdings has agreed to acquire Garnet's 50% interest in Enerox Holdings Ltd, the owner of the CellCube brand, an energy storage system.

Mustang will be responsible for paying or procuring the payment of the consideration to Garnet upon completion. The total consideration to Garnet for its shareholding in Enerox is USD33.2 million. Mustang says it will raise up to USD2.0 million through the issue of new convertible loan notes to new and existing investors. The proceeds will used to Enerox with additional funding until readmission.

Mustang conditionally acquired 22% of VFRB Holdings in April, 2021. In August, it conditionally acquired a 27% interest in VRFB Holdings. In November, it conditionally acquired the remaining interest in VRFB Holdings. Following the completion of these three acquisition and the Garnet acquisition, Mustang will own the entire share capital of VRFB Holdings. VRFB Holdings would, in turn, own the entire share capital of Enerox Holdings Ltd.

Current stock price: 30.6 pence

By Heather Rydings, Alliance News senior economics reporter

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