- After an almost two-month wait, Hannans (HNR) reveals the amended agreement terms with Greenhouse Investments
- The companies struck a deal in February for Hannan to expand its lithium battery recycling operations to the UK, Ireland, Italy and the Balkans through a sub-licence structure
- Now, Hannans will hold 100 per cent of Greenhouse’s commercialisation rights and will raise up to $2 million at two cents instead of the original $3.5 million at 3.5 cents
- The consideration remains the same which is Hannans issuing almost 500 million shares to Greenhouse and, in exchange, Greenhouse will have a 19.9 per cent interest in Hannans
- If shareholders approve the deal and the capital raise is completed, Hannans will be one of just two companies with rights to commercialise a sustainable lithium battery recycling technology
- Company shares last traded at 2.1 cents on June 2
After almost two months, Hannans (HNR) has revealed an amended agreement with Greenhouse Investments.
On June 3, Hannans suspended trade pending an announcement detailing some changes to an agreement originally signed on February 1.
The heads of agreement with Greenhouse Investments, an Ireland-based firm, related to Hannan’s goal of expanding its lithium battery recycling operations to the UK, Ireland, Italy and the Balkans.
The deal would see Hannans’ sub-licences and rights cover almost half of the EU’s entire population (including the UK), and roughly 38 per cent of motor vehicles registered in the region.
As of today, the main amendments will see Hannans directly hold 100 per cent of the Greenhouse commercialisation rights for all territories, effectively removing the “sub-licence” structure and “right to fund”.
Hannans said this arrangement presents a “stronger outcome” for its shareholders and removes any complexities and risk associated with sub-licences and the right to fund.
The company will also raise up to $2 million at 2 cents instead of the original $3.5 million at 3.5 cents. Additionally, Hannas will no longer proceed with a consolidation of capital as part of the re-compliance transaction to some ASX listing rules.
The consideration will remain the same which is Hannans issuing almost 500 million fully-paid shares to Greenhouse.
Once the transaction is completed, Greenhouse will transfer all of its rights, title and interest in commercialisation rights to Hannans in exchange for being issued with a 19.9 per cent stake in Hannans.
“We have been working collaboratively with Greenhouse and the technology owner to reach an improved agreement for Hannans shareholders, and we express our gratitude to both parties for their support,” Hannans Executive Director Damian Hicks said.
If the transaction is approved by Hannans’ shareholders and the capital raise is completed, Hannans will be one of just two companies in the world with rights to commercialise a sustainable lithium battery recycling technology.
Company shares last traded at 2.1 cents on June 2.