Shareholders of dual-listed Ipsa on Wednesday approved the sale of the company’s subsidiary Blazeway Engineering, which owns Newcastle Cogeneration (NewCogen), to Sloane Corporation.
Ipsa last month announced plans to sell the subsidiary to raise working capital and avoid sending NewCogen – its sole operating asset – into business rescue in the absence of other funding solutions.
Sloane Corporation, which is owned and operated by former Ipsa director Peter Earl, would acquire Blazeway for £1.86-million, with £50 000 to be paid in cash and the balance to be settled through noncash considerations.
The sale remained subject to a number of conditions precedent, including approval by the Industrial Development Corporation (IDC) under the terms of a loan agreement between NewCogen and the IDC, as well as approval by certain Ipsa creditors.
The transaction was subject to a longstop date of February 29.
Should the deal be finalised, Ipsa would be regarded an Aim Rule 15 cash shell and would be required to make an acquisition or acquisitions constituting a reverse takeover within six months.