Sabien Technology Group PLC Agreement for Establishment of SPV (4182W)
December 22 2021 - 1:00AM
UK Regulatory
TIDMSNT
RNS Number : 4182W
Sabien Technology Group PLC
22 December 2021
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF REGULATION 11 OF THE MARKET ABUSE (AMENDMENT) (EU EXIT)
REGULATIONS 2019/310.
22 December 2021
Sabien Technology Group plc
("Sabien" or the "Company")
Formation of SPV for purchase and development of a Plastics
Recycling Site
Sabien Technology Group plc, a Company focused on a Green
Aggregation Strategy announces that it has today entered into an
agreement with Parris Group Ltd, concerning the establishment and
development of a Special Purpose Vehicle (the "SPV"). The focus of
the SPV will be to buy and develop a plastic recycling site in the
UK. It is intended that the plastic recycling site will incorporate
the City Oil Field Inc. ("COF") proprietary technology, further
information, including the meaning of the defined terms used
herewithin, of which is available within the Company's announcement
on 15 September 2021. Parris Group and Sabien will own 66.67% and
33.33% of the SPV respectively and are advancing initial loan
facilities of up to GBP149k and GBP74k respectively, in addition to
the initial share capital of GBP1k. This SPV has been registered on
Companies House under the name b.grn Group Ltd (pronounced "Be
Green").
Parris Group Limited is owned exclusively by Richard Parris,
Executive Chairman of Sabien, and his family ("Parris Group"). On
30 November 2021, Parris Group secured a six-month period of
exclusivity to evaluate and complete a potential transaction on the
site owned by Greenfield Properties (UK) Limited near Northampton
(together the "Exclusivity Agreement"). This site already has
appropriate planning and regulatory approvals in place to
accommodate a plastics-to-oil processing facility. Parris Group has
agreed to assign the Exclusivity Agreement to the SPV at the cost
value of GBP75k, which will be included in the Parris Group's
initial loan balance. Sabien and Parris Group will advance cash
into the SPV under their loan facilities in proportion to their
shareholdings. Sabien's stake in the SPV will be accounted for as
an associate in the Company's future consolidated accounts, on
which it is expected to report a modest loss during the current
financial year relating to the Exclusivity Agreement and the
initial exploratory costs around developing a plastics recycling
plant.
Parris Group will be represented on the SPV Board by Ian Wyatt
and Jayne Murphy. Sabien will be represented by Ed Sutcliffe.
Richard Parris will be the SPV Company Secretary. Jayne Murphy is
the wife of Richard Parris. All members of the Board are
experienced company directors.
In addition to any potential equity growth, Sabien's existing
agency agreement with COF contracts that the operation of any such
facility will generate a revenue stream for Sabien through the
supply of technology, equipment and recurring support and
maintenance. Sabien will receive a commission of 10% of the selling
price of all products sold on behalf of COF to the SPV.
Sabien Executive Chairman Richard Parris said, "In my Annual
Results Statement issued on 31 August 2021 I stated, "we are
actively considering innovative structures within which to maximise
the returns to shareholders as soon as possible while minimising
execution expenses". I believe this is just such an arrangement.
The formation of the SPV provides Sabien with access to a scarce
resource - a recycling site with environment and planning approvals
- without high transactional overheads or time-consuming regulatory
processes. This opportunity has been enabled by the proactive and
cohesive involvement of the Nick Mason and his family, the owners
of Greenfield Properties, and I thank them for their on-going
support".
Further Information:
Sabien Technology Group plc
Richard Parris, Executive Chairman +44 20 7993 3700
Allenby Capital Limited (Nominated Adviser)
John Depasquale / Nick Harriss / Vivek Bhardwaj +44 20 3328 5656
Peterhouse Capital Limited (Broker)
Duncan Vasey / Lucy Williams +44 20 7469 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.com
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END
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