Shell company Emmit, where dealings in the shares are being investigated by the FCA, says it is in talks to acquire the share it does not own in the two businesses in which it holds minority stakes.
Management says that the recent FCA announcement has not been helpful and it wants to proceed with the acquisition as quickly as possible.
Emmit, which previously supplied security products, has made two investments since it became a shell. Emmit acquired a 20% stake in Ximax Environmental Solutions for £30,000 of shares issued at 6p each plus a warrant over 4.5m shares exercisable at 6p a share, while a 25% stake in Ximax Oil & Gas Solutions was acquired for £90,000 satisfied by 1.8m warrants exercisable at 6p each. There may be a restructuring of these businesses so that they can be acquired all at once.
Ximax Environmental is a water treatment company which has developed a chlorine dioxide-based product called XzioX. This is used to treat reservoirs, rivers, boreholes, oil, gas and fracking fluids and kill bacteria. XzioX can be used in agriculture, food, oil, gas and drinks sectors. Ximax Oil & Gas has further developed the XzioX technology for the oil and gas industry and the enhanced product is sold as FlowXcel.
If the shares had not already been suspended they would have to be suspended until a deal is done.
Conversion of convertible loan notes has improved the balance sheet since the June 2014 balance sheet date.
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