Technology Minerals puts merger plans on hold
Technology Minerals has announced it is scrapping proposals to acquire the remaining capital of battery recycling business Recyclus.
It already owns 48.35 per cent of Recyclus, which includes LiBatt in Wolverhampton, but in an update on the London Stock Exchange said the two 'have agreed not to continue with the merger at this time'.
A statement said it would be revisited 'when circumstances permit and the prevailing equity market conditions are more favourable'.
It added: "In the meantime, the Company remains focused on supporting Recyclus in its growth strategy."
Robin Brundle, Chairman of Technology Minerals, said: "Technology Minerals is excited by the recent developments at Recyclus and fully supportive of its growth plans and the potential for new partners alongside the Company. We intend to revisit our merger strategy when market conditions improve and it is beneficial to shareholders."
Technology Minerals recently announced a cost reduction programme after reviewing operations and will cut jobs across its workforce.
Technology Minerals, a battery metal recycling firm, said it planned to carry out a cost reduction programme 'to enhance efficiencies throughout the business and focus on the company's key assets' including its 48.35 per cent held associate, Recyclus Group.
The Company has undertaken a review of operations and is implementing cost reduction measures across the business including a redundancy programme to reduce its total workforce, a reduction in head office costs, and an ongoing review of all service providers.
As part of the cost reduction programme, Philip Beard agreed to step down as an Independent Non-Executive Director and as Chairman of the Remuneration Committee with immediate effect.
Robin Brundle, Chairman of Technology Minerals, said: "These cost reduction measures have been identified as part of the Board's efforts to increase efficiencies and drive productivity throughout every level of the business. On behalf of the Board, I'd like to extend our thanks and appreciation to Phil for his contribution to the Company. We are grateful for all the strategic guidance Phil has provided to Technology Minerals and wish him the best in his future endeavours."
