Dg Innovate (LSE:DGI)
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RNS Number : 7203H

DG Innovate PLC

08 April 2022

NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, DIRECTLY OR INDIRECTLY, IN OR TO THE UNITED STATES, CANADA, AUSTRALIA, THE REPUBLIC OF SOUTH AFRICA, JAPAN OR ANY MEMBER STATE OF THE EUROPEAN ECONOMIC AREA ("EEA") (OTHER THAN ANY MEMBER STATE OF THE EEA WHERE SECURITIES MAY BE LAWFULLY MARKETED) OR ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO DISTRIBUTE THIS ANNOUNCEMENT. THE INFORMATION CONTAINED HEREIN DOES NOT CONSTITUTE OR FORM PART OF ANY OFFER TO ISSUE OR SELL, OR ANY SOLICITATION OF ANY OFFER TO SUBSCRIBE OR PURCHASE, ANY INVESTMENTS IN ANY JURISDICTION.

This announcement is an advertisement for the purposes of the Prospectus Regulation Rules of the UK Financial Conduct Authority ("FCA") and is not a prospectus. This announcement does not constitute or form part of, and should not be construed as, an offer for sale or subscription of, or solicitation of any offer to subscribe for or to acquire, any ordinary shares in Path Investments plc in any jurisdiction, including in or into the United States, Canada, Australia, the Republic of South Africa or Japan. Investors should not subscribe for or purchase any ordinary shares referred to in this announcement except on the basis of information in the prospectus (the "Prospectus") in its final form, published by the Company in connection with the proposed acquisition and the admission of its enlarged ordinary share capital to the Standard Listing segment of London Stock Exchange plc's Main Market for listed securities.

8 April 2022

DG Innovate plc

("DG Innovate" or the "Company")

Admission to the Main Market of London Stock Exchange and First Day of Dealings

DG Innovate plc , is pleased to announce its admission to the standard segment of the Official List and to trading on the Main Market of the London Stock Exchange. The Company's ordinary shares will begin trading at 8.00 a.m. today under the TIDM 'DGI' (ISIN: GB00BYQD5059).

Highlights

-- Path Investments plc, now renamed DG Innovate plc, has, on Admission, completed the acquisition of Deregallera Holdings Ltd (formerly DG Innovate Limited) ("DGI") for an initial consideration of GBP32.4 million satisfied by the issue to the DG Innovate Shareholders of 5,397,451,305 Initial Consideration Shares at a deemed issue price of 0.6 pence per Ordinary Share . Further conditional deferred consideration of up to GBP5.4 million, to be satisfied by the issue of up to 895,610,844 Deferred Consideration Shares on the first anniversary of completion, will become payable should DG Innovate sign one or more supply agreements for the provision of their motor technology with certain defined customers prior to this date with a combined potential value of GBP5.0 million or more.

-- DG Innovate is an advanced research and development company pioneering sustainable and environmentally considerate improvements to electric mobility and storage, using abundant materials and the best engineering and scientific practices. DG Innovate is currently developing its products alongside a number of major manufacturers across the transportation and energy sectors, research institutions and the UK Government, and has filed 18 patents worldwide. DG Innovate's current research and development activities are broadly split into two areas, focusing on novel electric motor technologies and energy storage solutions. Its two main products are:

o Enhanced Drive Technology (EDT) - High efficiency, lightweight, cost-effective electric motors and electronics; and

o Enhanced Battery Technology (EBT) - Sodium-ion batteries offering a sustainable energy storage solution at similar/greater energy density to incumbent technologies at a lower cost, increased safety with lower environmental footprint.

-- The Company has raised GBP2,550,000 through the issue of 510,000,000 Subscription Shares at 0.5p per Ordinary Share. Further, the Company has, following the irrevocable exercise of 830,800,000 Warrants (0.25p) conditional on Admission, raised an additional GBP2,077,000.

-- The Company's market capitalisation at the Subscription Price of 0.5p per ordinary share on Admission is expected to be GBP44.2 million.

   --      The Company's website address is www.dgiplc.com . 

-- The Company's Board from Admission comprises Nicholas Tulloch (Non-executive Chairman), Christopher Theis (Chief Executive Officer), John (Jack) Allardyce (Finance Director), Martin Boughtwood (Chief Technical Officer), Patrick Symonds (Independent Non-executive Director), Sir Stephen Dalton (Independent Non-executive Director), Andrew Boughtwood (Non-executive Director) and Trevor Gabriel (Non-executive Director).

Background on DGI

DGI is an advanced research and development company pioneering sustainable and environmentally considerate improvements to electric mobility and storage, using abundant materials and the best engineering and scientific practices. DGI is currently developing its products alongside a number of major manufacturers across the transportation and energy sectors, research institutions and the UK Government and has filed 18 patents worldwide.

DGI' current research and development activities are broadly split into two areas, focusing on novel electric motor technologies and energy storage solutions. Its two main products are:

-- Enhanced Drive Technology (EDT) - High efficiency, lightweight, cost-effective electric motors and electronics; and

-- Enhanced Battery Technology (EBT) - Sodium-ion batteries offering a sustainable energy storage solution at similar/greater energy density to incumbent technologies at a lower cost, increased safety with lower environmental footprint

DGI was founded in 2009 by Martin Boughtwood with a vision of delivering sustainable and environmentally considerate improvements to electric mobility and storage, using abundant materials and the best engineering and scientific practices. Specifically, DGI has sought to address the major problems facing both electric mobility and energy storage. For the former, the key barrier to market penetration to date has been the effective real-world range of electric vehicles. DGI has therefore focused on developing electric drive systems which aim to deliver improved range over existing technology, based on the same battery capacity, by reducing losses and improving efficiency. DGI has a long-standing working relationship with the UK Government and is also collaborating with a global Tier 1 supplier to the commercial vehicle market.

In its energy storage development, which commenced in 2013, DGI has focused on developing anode active materials as a key enabling technology for sodium-ion batteries. DGI is in collaboration or commercial contact with several companies throughout the supply chain with the view towards volume commercialisation in the medium term.

DGI has developed a significant intellectual property portfolio since its foundation, including a novel electric motor and corresponding architecture and a suite of energy storage materials (including sodium-ion cells and supercapacitors). It has been granted 11 patents during this time, with a further seven pending and a number of drafts under consideration.

To date DGI has received approximately GBP18.6 million in funding through a mixture of equity from private funders, debt, grants and research funding from the UK Government, the Welsh Development Agency and through highly competitive grant awards under the Innovate UK Faraday Challenge.

Commenting, Christopher Theis, CEO of DG Innovate, said:

"We are delighted to have completed the acquisition of DGI and to the start of trading on the Main Market of the London Stock Exchange. We believe that DGI presents a compelling value opportunity with the Company having a strong technology and IP portfolio, targeted at current market technology's shortcomings, coupled with significant commercial relationships, high calibre technical staff and near-term commercialisation opportunities. We have assembled a strong board to guide DG Innovate and we are very excited to be embarking on the journey ahead with the support of our key stakeholders ."

Total Voting Rights

Following Admission total number of Ordinary Shares with voting rights in the Company is 8,842,715,107. The Company does not hold any shares in treasury and all of the ordinary shares have equal voting rights. This figure may be used by shareholders as the denominator for the calculations by which they determine if they are required to notify their interest in, or a change of their interest in, the Company under the FCA's Disclosure Guidance and Transparency Rules.

Prospectus

The Company's Prospectus was published on 14 March 2022 and is available to view on the Company's website.

Capitalised terms not otherwise defined in this announcement have the same meaning ascribed to them in the Prospectus.

For further information please contact:

 
 DG Innovate plc                              C/O IFC 
 Christopher Theis 
  Jack Allardyce 
 
 IFC Advisory (Financial PR & IR)             020 3934 6630 
 Tim Metcalfe 
  Zach Cohen 
 
 Grant Thornton UK LLP (Financial Adviser) 
  Samantha Harrison 
  Harrison Clarke 
  Daphne Zhang 
  Ciara Donnelly                              020 7383 5100 
 
 ETX Capital (Broker)                         020 7392 1400 
 Tom Curran 
  Thomas Smith 
 
 

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April 08, 2022 02:00 ET (06:00 GMT)