Sabien Technology Group PLC Supply of UK's First Regenerative Green Oil System (9829E)
November 02 2022 - 3:00AM
UK Regulatory
TIDMSNT
RNS Number : 9829E
Sabien Technology Group PLC
02 November 2022
2 November 2022
Sabien Technology Group plc
("Sabien", the "Company" or the "Group")
Contract Update - Supply Contracts Signed for First Regenerative
Green Oil system in the UK
Sabien Technology Group plc (AIM:SNT), the company focused on a
green aggregation strategy, provides an update on contract status
with City Oil Field, Inc., of South Korea ("COF"), a previously
announced partner of Sabien that specialises in solutions for
recycling waste plastic into fuel products and naphtha, and b.grn
Group Ltd ("b.grn"), a previously announced special purpose vehicle
("SPV") 33% owned by Sabien.
On 26 October 2022, b.grn and COF signed a binding contract for
the supply of the first 24T COF Regenerated Green Oil ("RGO")
system into the UK (the "Agreement"), with Sabien as the sales
agent under the Agreement (as set out in the Company's announcement
of 22 December 2021). Under the Agreement, b.grn is responsible for
securing, funding and developing a suitable site and for procuring
all necessary equipment from COF, and COF are bound to supply the
contracted system at the price set out in the Agreement under
engineering, procurement, and construction ("EPC") contract terms.
b.grn has today paid a fee to COF to formalise this contract. The
Agreement is conditional on b.grn raising the required funding and
entering into an EPC agreement within one year (unless mutually
agreed to extend).
In addition, Sabien notes that b.grn has (1) announced and
commenced a fund-raising round to capitalise the SPV, (2) issued a
formal expression of interest in a site in the UK Midlands, (3)
commissioned an architect to design necessary buildings on the
target site and (4) entered into MOU discussions to install RGO
facilities in multiple countries in addition to the UK. Sabien has
no liability under the Agreement, nor has any requirement to
provide funding to b.grn. There is no certainty that b.grn will be
able to raise the required funds.
The Board of Sabien believes it is probable that the Agreement
will be completed, however there can be no guarantee. Subject to
b.grn being able to secure sufficient finance and agree an EPC
contract with COF, Sabien will earn a commission of circa
US$1,000,000 on successful delivery and installation of this first
installation and each subsequent installation under its sales
agency agreement with COF. It is expected this will occur within
the next 18 months. As a shareholder in b.grn, Sabien will also
profit share in b.grn earnings from future operations.
Richard Parris, Chairman of Sabien, commented:
"The signing of the Agreement followed a successful visit by
executives from COF and the Korean Environmental Corporation to the
UK on 24-26 October. After meetings in the Palace of Westminster, a
dedicated Trade Summit, visits with Cambridge and Birmingham
Universities, engagements with city councils and the inspection of
a target site, the parties to the contract agreed that the time was
right to move from a discussion phase to the start of business
execution. As interested parties, I will keep Sabien investors
updated on b.grn's production roll-out plans. In the meantime, a
recording of the trade summit can be viewed at:
https://youtu.be/yx106F79HMk ."
For Further Information:
Sabien Technology Group plc +44 20 7993 3700
Richard Parris, Executive Chairman Scott.fulton@sabien.com
Scott Fulton, Investor Relations
Allenby Capital Limited (Nominated
Adviser)
John Depasquale / Nick Harriss /
Vivek Bhardwaj +44 203 328 5656
Peterhouse Capital Limited (Broker)
Duncan Vasey / Lucy Williams +44 207 469 0930
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
AGRFZMGMNMGGZZM
(END) Dow Jones Newswires
November 02, 2022 03:00 ET (07:00 GMT)
Sabien Technology (LSE:SNT)
Historical Stock Chart
From Jun 2024 to Jul 2024
Sabien Technology (LSE:SNT)
Historical Stock Chart
From Jul 2023 to Jul 2024