Bushveld Minerals Limited has again pushed back the backstop date for Mustang Energy to take a 22% stake in its vanadium redox battery business, VRFB-H.
After a legal objection by an investor in Enerox, one of VRFB-H’s investee companies, the maturity date for convertible loan notes issued by Mustang to make its investment is now 28 February.
Fortune Mojapelo, Bushveld’s chief executive, said: “I am pleased we were able to agree on new terms given the unforeseen events that prevented the initial transaction from closing within the original timeframe.
“The extension of the maturity date may also allow some visibility as to the potential outcome of the litigation.”
Bushveld said the ongoing uncertainty due to the litigation, among other things, precludes Mustang Energy from issuing a prospectus which is a precursor for its shares being readmitted to trading on the Standard List of the Main Market.
The court action is scheduled to start today (19 January), said Bushveld.
“It is Bushveld’s continued belief that vanadium redox flow batteries remain a favourable and competitive storage solution option given the metal’s unique characteristics and the development and commercialisation of products, such as those produced by Enerox.”
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