Emmerson enters binding MOU for reverse takeover of Moroccan salts

Emmerson confirmed on Tuesday that it had entered into a binding Memorandum of Understanding with the board and principal shareholders of Moroccan Salts regarding the proposed acquisition of 100% of the latter's share capital by way of a reverse takeover.

The listed special purpose acquisition company agreed to acquire the entire share capital of Moroccan Salts for a total consideration of £10m at an implied price of £0.03 per share.

Transaction close remained subject to due diligence, completion of the fundraising, the re-listing of the enlarged group on the London Stock Exchange and the approval of shareholders, so there was no certainty regarding its completion, the company said in a statement.

If the takeover completed, then the company would take on "certain" liabilities of Moroccan Salts and raise working capital enabling the group to take the project forward.

That said, the company also revealed that the budget and work programme for the project had not yet been agreed, implying that the quantum of the fundraising was not yet determined, as a result.

Moroccan Salts is a British Virgin Islands registered company focused on developing the Khemisset potash project located near Rabat in northern Morocco.