(Alliance News) - Tekmar Group PLC shares dropped on Monday, after it extended its exclusivity period with a company in the energy sector, which is being lined up as a potential investor.

Tekmar is a Darlington, England-based technology and services provider for offshore energy markets. Its shares were down 16% to 14.55 pence each in London on Monday morning.

The company initiated a strategic review in June to seek a partner to grow the company both organically and by acquisition, as well as to provide "additional balance sheet strength".

A formal sales process was one option under review, Tekmar noted.

In November, Tekmar had said that the potential investor is in the energy sector and has been granted a 60-day period of exclusivity to carry out further due diligence and finalise its proposal.

Tekmar said the proposal would represent new capital investment at or around the current share price, rather than an offer being made for its shares. The investment will allow Tekmar to retain its AIM listing.

On Monday, Tekmar said the exclusivity period has now been extended by a further 14 day period.

"The proposal being considered represents a strategic investment from a global institutional investor in the energy sector, which would provide funding for the company to follow an ambitious plan for growth, both organically and by acquisition and would not result in an offer being made for the company's shares but would represent new capital investment, at or around the share price at the time exclusivity was granted in November 2022, and would allow the company to retain its admission to trading on AIM," Tekmar said.

The company added that there is no guarantee that this proposal will be completed. However, if the proposal is successfully completed, then this will conclude Tekmar's strategic review and formal sale process.

By Sophie Rose, Alliance News reporter

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