Shell company Emmit is trying to move forward with the acquisitions of Ximax Environmental Solutions and Ximax Oil & Gas Solutions.
Emmit acquired a 20% stake in Ximax Environmental 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 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.
The two companies are estimated to have generated £2.5m in the ten months to December 2014, which is higher than expected. There are already orders in place that should generate revenues of more than £4m in 2015.
Trading in Emmit shares was suspended on 17 October because of FCA concerns about a firm offering a scheme to transfer money from work pensions into Self-Invested Personal Pensions (SIPPs) invested in Emmit. The FCA believes that inexperienced investors are being targeted. Emmit does not appear to be directly involved.
SPARK has been appointed as nominated adviser to Emmit. This happened one month after Daniel Stewart resigned so it stopped the quotation being cancelled. Daniel Stewart replaced Cairn when it resigned in July. The shares remain suspended.
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