London-listed Pennpetro Energy Plc (LSE:PPP) said its board has shifted its reverse-takeover plans to Indigenous Canadian Energy Holdings Inc., a Calgary-based firm that converts waste wood fiber into pelletized biofuel for residential and industrial heating and power generation.
The change replaces a previously identified Ukrainian target. Pennpetro cited the continuing conflict in Ukraine as making due diligence, valuation and funding for that venture unworkable for a public company. RMD, a private vehicle that previously funded Pennpetro, will continue exploring the Ukrainian opportunity on its own.
ICENERGY, registered at the Westbank First Nation in British Columbia, co-founded in 2012 by Grand Chief Ronald M. Derrickson and Richard Spinks — both still main shareholders — operates steam-enhanced black pellet production and heat treatment of lignocellulosic fiber to produce biofuels and biochemical products. The company says it has 14 years of research and development in thermal treatment of fiber and wildfire-damaged timber, with operations in Canada and the European Union.
First retail production and revenue from a contracted facility in the United States are anticipated in October 2026, according to the source. A second plant is planned for Canada in 2027, and a larger industrial facility in Alberta is being designed to produce roughly 400,000 tons annually.
The proposed transaction is treated as a related-party deal and will be submitted to independent directors for a final decision. It remains subject to a terms agreement, completion of due diligence, funding, publication of a prospectus approved by the Financial Conduct Authority and shareholder approval.
Pennpetro announced it will hold two shareholder calls — one on Wednesday and another on September 24 at 18:30 UK time — ahead of its annual general meeting on September 30.
