New World Oil & Gas said it has signed a non-binding letter of intent to acquire the entire issued share capital of Big Sofa Limited and has suspended its shares with immediate effect.
The company has made the move as the acquisition would amount to a reverse takeover under the AIM rules.
New World said the company’s directors requested that trading In its shares by suspended with immediate effect pending the publication of the required document or confirmation that the acquisition is not proceeding.
The company said the deal, if completed, would result in New World shareholders having around 45% of the enlarged group prior to the impact of any associated fundraising.
Big Sofa Limited is a technology services company operating in the area of data and video and image analytics.
New World said it has agreed to provide Big Sofa with a short-term loan of up to £500,000 for working capital purposes.
The loan will be drawn down in two traches, with £250,000 being drawn immediately.
In a statement, the company said it will also consider raising additional funds from both existing shareholders and new investors and to finance the development of the group going forward.
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