THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF REGULATION 11 OF THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS 2019/310.
11 November 2021
Sabien Technology Group plc
("Sabien" or the "Company")
Licence agreement with Proton Technologies Canada Inc.
The Board of Sabien Technology Group plc (AIM:SNT), a Company focused on building a portfolio of solutions in the heating, cooling, and transportation sectors, announces today that it has signed heads of terms ("HOT") with Proton Technologies Canada Inc., ("Proton") in relation to a hydrogen processing licence within UK territories.. The key elements of the HOT are:
· A license for Sabien to produce 20 tonnes of hydrogen per day, expandible by future agreement to higher volumes, generated using Proton's technology, to process:
o Suitable oil fields located Onshore United Kingdom (Great Britain and Northern Ireland) and offshore within UK Territorial Waters ("the Territory"), and/or
o Oil output by City Oil Field ("COF") facilities in the Territory.
· Proton to provide all necessary technical assistance to validate suitable sites and to provide advice on establishing and operating the installation
· Consideration of £100,000 in cash; and
· 280,000 warrants to be issued with exercise price of 60 pence per ordinary share of 3 pence each ("Ordinary Shares") with an expiry date of 19 February 2023. These quantum of warrants was agreed as if the £100,000 cash consideration was paid in shares on a 1:1 basis at a share price of 35.7p
In addition, the HOT include the option for Proton to install a 24 tonnes/day recycling plant on its site in Saskatchewan using the COF process licenced to Sabien to convert plastic waste to synthetic oil.
The HOT are subject to:
· Completion of a mutually acceptable Intellectual Property Licence agreement;
· Regulatory approval for the installation and operation of a COF facility at Proton's Saskatchewan site;
· Payment of the Consideration; and
· Completion of a mutually acceptable commercial agreement between Proton and Sabien regarding the COF installation.
In the course of its due diligence in support of this licence agreement, the Board of Sabien commissioned a report from JS Global Advisory into the likely benefits from Proton's Clear H2 Process. This report concluded that this process "has the potential to be a significant step forward for the Onshore UK Energy Transition Process" and also validated that there are suitable sites within the territory of the licence agreement.
Commenting on the Proton licence deal, Richard Parris, Executive Chairman, said:
"Sabien is delivering on its strategy of building a portfolio of operations which, in combination, provide critical elements of the transition to a Green Economy. Following Sabien's initial investment in Proton announced 14 October 2021, the Board is pleased to have secured a significant licence deal with Proton. Proton's technology is likely to prove important in the development of hydrogen as a major sustainable energy source. Alongside other investments and partnerships with operators in areas such as HVAC efficiency, waste plastic recycling into fuel oil, and high-speed electric motors, I believe that Sabien is emerging as a champion for the Green Economy. We look forward to working with Proton and to building further on our successful portfolio approach."
Sabien Technology Group plc
Richard Parris, Executive Chairman
+44 20 7993 3700
Allenby Capital Limited (Nominated Adviser)
John Depasquale / Nick Harriss
+44 203 328 5656
Peterhouse Capital Limited (Broker)
Duncan Vasey / Lucy Williams
+44 207 469 0930
The person who arranged for the release of this announcement on behalf of the Company was Richard Parris, Executive Chairman.
A copy of this announcement will be available from the Company's website at www.sabien-tech.com
Further information on Proton Technologies Canada Inc., can be viewed at Lowest cost Hydrogen with Zero Emissions. (proton.energy)
A copy of the JS Global Advisory report is available on the Company's website at https://sabien.com/wp-content/uploads/2021/11/Clear-Hydrogen-in-UK-.pdf