Quadrise Fuels International PLC Co-Marketing & Project Development Agreement (9849I)
November 30 2018 - 1:00AM
UK Regulatory
TIDMQFI
RNS Number : 9849I
Quadrise Fuels International PLC
30 November 2018
30 November 2018
Quadrise Fuels International plc
("Quadrise", "QFI" or the "Company")
Co-Marketing and Project Development Agreement with
Freepoint
Quadrise is pleased to announce that the Company has entered
into a Co-Marketing and Project Development Agreement ("CMPDA")
with Freepoint Commodities LLC ("Freepoint").
Freepoint, which is based in Stamford, Connecticut, is both an
established global merchant of physical commodities and a financer
of upper and mid-stream commodity-producing assets. Freepoint also
provides physical supply services and related structured solutions
for counterparties located throughout the world.
The CMPDA provides a clearly defined structure for Quadrise and
Freepoint to work together to progress MSAR(R) projects to
long-term commercial agreements for the production and supply of
MSAR(R) fuel to defined territories and counterparties on an
exclusive basis. The preferred business model for both parties
under the CMPDA is to 'Build Own and Operate' ("BOO") a facility
jointly, to purchase residual streams under long-term contracts
from a refiner and enter into back to back contracts with other
counterparties for the supply of MSAR(R) fuels. Financial returns
under the CMPDA are based on the respective party's contributions
to bringing the project to fruition.
Building on the concepts established under the Memorandum of
Understanding signed in July 2018, now under the CMPDA, Quadrise
and Freepoint will investigate and pursue a carefully selected and
mutually agreed list of MSAR(R) project opportunities. The parties
will initially focus on the Americas, the Middle East and Asia,
with the intention of jointly investing in projects on a BOO basis.
In addition, there may be circumstances where a decision is taken
by both parties to pursue a project on a tolling or licensing basis
and the CMPDA defines the relevant participation of the parties in
those circumstances. If QFI chooses not to participate in a project
targeted by the CMPDA, the Company will grant Freepoint a licence
to QFI's technology to build and operate a project on a
site-by-site basis. The term of the CMPDA is 36 months, after which
time it will continue unless terminated by either party with 24
months' notice.
Commenting on this development:
Mike Kirk, Executive Chairman of QFI, said:
"We are delighted that through this new agreement we now have a
clear path to progressing commercial opportunities. This will be on
a collaborative basis, with a preferred business model which
materially increases the returns captured by the parties from
MSAR(R) projects with the tolling or licensing models also
available within the agreement as alternatives. The board looks
forward to realising the commercial benefits from the complementary
skills, market positions and in-depth knowledge of Quadrise and
Freepoint.
The willingness of both parties to commit significant resources
through this agreement demonstrates the confidence that Freepoint
has in Quadrise's MSAR(R) technology and its ability to capture
significant value in the liquid fuels market. The target list of
countries and entities will ensure that appropriate resources are
dedicated to the most promising projects, to enable progress to
commercial terms with third parties at the earliest
opportunity.
Working alongside Freepoint the Company will progress much more
rapidly to delivering value to shareholders through the use of
MSAR(R) technology to supply large scale projects in the power and
marine sectors."
David Messer, CEO of Freepoint, said:
"Freepoint has been impressed with the team at Quadrise and I am
pleased that we have been able to conclude the CMPDA. We see
extensive potential in deploying Quadrise's MSAR(R) technology to
add value for the benefit our customers, and we look forward to
working with Quadrise to advance projects where MSAR(R) has clear
economic and environmental advantages over existing fuel
sources."
For further information, please refer to the Company's website
at www.quadrisefuels.com, or contact ir@quadrisefuels.com or
phone:
Quadrise Fuels International Plc
Mike Kirk, Executive Chairman +44 (0)20 7031 7321
Jason Miles, Chief Operating Officer
Nominated Adviser
Smith & Williamson Corporate Finance Limited
Dr Azhic Basirov +44 (0)20 7131 4000
Ben Jeynes
Katy Birkin
Joint Brokers
Peel Hunt LLP
Richard Crichton +44 (0)20 7418 8900
Ross Allister
Stockdale Securities
Andy Crossley
Daniel Harris +44 (0)20 7601 6108
Public & Investor Relations
FTI Consulting
Ben Brewerton +44 (0)20 3727 1000
Sara Powell
For further information about Freepoint, please refer to
Freepoint's website at www.freepoint.com.
Notes to Editors
QFI is the supplier of MSAR(R) emulsion technology and fuels, a
low-cost alternative to heavy fuel oil (one of the world's largest
fuel markets, comprising over 450 million tons per annum) in the
global power generation, shipping, steam and refining
industries.
This announcement is inside information for the purposes of
Article 7 of EU Regulation 596/2014.
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
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contact rns@lseg.com or visit www.rns.com.
END
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