TIDMQFI
RNS Number : 5754L
Quadrise Fuels International PLC
01 May 2020
1 May 2020
Quadrise Fuels International plc
("Quadrise", "QFI", the "Company" and together with its
subsidiaries the "Group")
Further Statement re Covid-19
Update on Business Development Activities and Funding
Position
Following the adoption of proactive measures taken in early
March 2020 to protect the Group's employees and business, QFI has
continued to make progress in its business development and research
activities.
When the Company announced its interim results on 30 March 2020,
it was confirmed that initiatives to reduce costs had enabled the
Company to extend its period of operation on current funds to 31
March 2021. The Company is now pleased to announce that a total of
over GBP0.5m in cost savings and reduced financial commitments have
been achieved, which will enable the Company to continue to operate
through to mid Q2 2021, based on existing funds. This provides the
Company with a significant cash runway before new funding is
required.
Savings have been made through a variety of actions; reducing
the overall costs of the board, consultant cost reductions,
revisions to the office lease, and furloughing of certain members
of staff. We are also seeking to access to other UK Government
support schemes where this is appropriate.
Our equipment and MSAR(R) fuel for the first phase pilot plant
trial in Morocco are now on site and the joint project team remains
in regular contact to progress the second phase activities for the
trials on the client's larger commercial units. When we can gain
safe access to the site, we will be able to commence the pilot
trial and further progress the FEED study. The expected successful
outcome of the pilot trial, and submission of the FEED study, will
release payment for phase 2 in advance of the commercial trial
agreements.
We have received extensive information from the client in South
America and the techno-economic studies are being finalised, prior
to being shared with Freepoint Commodities and the client.
In the marine sector, discussions with the two scrubber-equipped
major shipping companies are continuing, alongside our continued
investigations into the physical bunker supply business with
stakeholders.
In the Kingdom of Saudi Arabia, we are continuing to follow-up
via Al Khafrah following the recent meeting in Riyadh at the Head
Office of the power company. The next stage is a meeting with the
management team from the western province where the trial would be
held. Whilst our preference for this key meeting would be face to
face, we are reviewing other alternatives with Al Khafrah to
maintain momentum during Ramadan.
We remain in regular contact with our other clients and relevant
agents, but at this stage there is nothing material to report on
those activities beyond that disclosed in the interim results.
Quadrise's London office has been closed since mid-March, with
all staff working efficiently from home. Using collaborative
working systems adopted and used regularly since 2019. this
transition has worked very smoothly for both internal meetings and
meetings with clients and other stakeholders. Our research and
operational support facility in Essex, ("QRF"), continues to
operate as staff live locally, commute by car or foot, and can
socially distance safely whilst working there. Emulsion production
and testing at QRF continues to support business development,
patent applications and general MSAR(R) research development and
innovation initiatives.
Mike Kirk, Chairman of QFI, said:
"We are pleased that we have been able to deliver a material
extension to our cash runway, which will now take us to mid Q2
2021. This provides us the opportunity to progress our business
development opportunities in earnest for over one-year - an
increase of around 5 months to that forecasted at the beginning of
2020.
Despite the current restrictions, we are continuing our
activities to very good effect; with material progress in the
second phase of work in Morocco; the techno-economic studies with
the client in South America and discussions on multiple
opportunities in the marine sector.
Although the oil market is significantly disrupted at this time,
we do not believe our clients are basing their medium to long-term
plans on the current pricing environment and so we remain confident
of the opportunities to progress our projects to commercialisation,
which will underpin any future funding needed in the period up to
mid Q2 2021."
For additional information, please contact:
Quadrise Fuels International Plc +44 (0)20 7031 7321
Mike Kirk, Chairman
Jason Miles, Chief Executive Officer
Nominated Adviser
Cenkos Securities plc +44 (0)20 7397 8900
Ben Jeynes
Katy Birkin
Joint Brokers
Peel Hunt LLP +44 (0)20 7418 8900
Richard Crichton
David McKeown
Joint Brokers
Shore Capital Stockbrokers Limited +44 (0)20 7408 4090
Toby Gibbs
Fiona Conroy
Public & Investor Relations
FTI Consulting +44 (0)20 3727 1000
Ben Brewerton
Ntobeko Chidavaenzi
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to constitute inside information as stipulated under the Market
Abuse Regulations (EU) No. 596/2014 prior to the release of this
announcement. Upon the publication of this announcement, this
inside information is now considered to be in the public
domain.
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END
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