Grant of Option

RNS Number : 8109B

Kleenair Systems International PLC

03 November 2009

 



KLEENAIR SYSTEMS INTERNATIONAL PLC 

3 November 2009 

Grant of Option 

On 8th September 2009 KleenAir Systems International Plc ("KleenAir") announced that it had entered into an Exclusivity and Co-Operation Agreement with Argosec Pty Ltd ("Argosec") (a South African limited liability company), and Argosec's parent undertaking GlobalTech Marketing Limited ("GlobalTech") (a New Zealand limited liability company), with regard to future co-operation between the parties to establish and develop a coal briquetting business for Argosec in South Africa.

Even though Argosec has yet to establish commercial production, KleenAir has today entered into a Call Option Agreement ("Call Option") with GlobalTech for the purchase from GlobalTech of 74% of the issued share capital of Argosec, and thereby has further formalised and protected its relationship with Argosec.  The balance of 26% of the issued share capital of Argosec is intended to be transferred to a South African Black Economic Empowerment Entity on or prior to exercise by the Company of the Call Option. A refundable deposit of £25,000 is payable to GlobalTech for grant of the Call Option. 

KleenAir is under no obligation to exercise the Call Option over the Argosec shares, and KleenAir does not currently intend to exercise the Call Option unless and until GlobalTech has finalised sufficient long-term financing to enable Argosec to establish sustainable commercial production of the coal briquetting business. The long-stop date for exercise of the Call Option is 31st December 2010.

The consideration will be payable annually following the end of each of the 3 years following the commencement of full time commercial production of coal briquettes and calculated as an amount equal to 74% of Argosec's adjusted post-taxation earnings. 

A further update announcement will be made in respect of this project in due course. 

Enquiries:

KleenAir Systems International Plc
Wayne Reid, Executive Chairman
[phone]

W.H. Ireland
Tim Cofman-Nicoresti/Katy Birkin
Tel: [phone]

Biddicks Financial Public Relations
Zoe Biddick
Tel: [phone]
www.biddicks.co.uk

 

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