Directorate Changes - Appointment of CEO and CFO

RNS Number : 1656H

Velocys PLC

13 November 2018

 

News release

Velocys plc

("Velocys" or "the Company")

13 November 2018

Directorate Changes - Appointment of CEO and CFO

Velocys plc (VLS.L), the renewable fuels company, is pleased to announce the appointment of Henrik Wareborn as Chief Executive Officer and Executive Director with immediate effect. Henrik has been acting as a consulting adviser to the Company and provided services equivalent to those of a Chief Commercial Officer since March 2017. In addition, Andrew Morris, Non-executive Director and Chairman of the Company's Audit and Risk Committee since June 2017, has been appointed as Velocys' full time Chief Financial Officer and will remain on the Board as an Executive Director.

Velocys is in the process of introducing strategic investors to finance the front end engineering and design (FEED) process of both the Bayou Fuels biorefinery project in Mississippi and the UK non-recyclable waste to jet fuel project. Henrik Wareborn has been leading this process with potential strategic investors for the Bayou Fuels project. Data has been provided on a confidential basis to a number of potential strategic investors and discussions are ongoing.

Henrik was formerly a Managing Director with Natixis S.A. (both in the UK and North America), and previously Global Head of Crude Oil Sales and Trading at BP PLC. His experience prior to this included roles as Executive Director at Hess Energy Trading Ltd, and Executive Director at Goldman Sachs International, London. His expertise includes investment banking, commodities trading, fund raising, and commodity finance.

The Board considers that Henrik's skill set and experience, together with the aptitude and commitment he has demonstrated over his time at Velocys mean that he is an excellent fit for CEO of the Company and that his knowledge, background and approach is exactly what is demanded now as Velocys moves to the next stage in discussions with interested investors.

Andrew Morris has considerable experience in the power and renewable energy, energy from waste and biofuels sectors, and has significant involvement in financing and business development for AIM companies, SMEs and private equity backed organisations. Andrew's appointment as Velocys' Chief Financial Officer will assist the Board significantly in managing the Company's finances.

Following the decision by the ENVIA Board in September 2018 to suspend operations, and the consequent reduction in Velocys' monthly cash burn rate, the focus of the new management is to concentrate on the two renewable fuel projects, the delivery of reactors to the Red Rock Biofuels project and on the cash management of the Company, including any recoveries from ENVIA.

In addition, the Board is engaging in the process of appointing two new Non-executive Directors in order to provide further expert support to the new team of Executive Directors. We look forward to making further announcements in due course.

David Pummell is standing down as Chief Executive Officer of the Company with immediate effect and Dr. Paul Schubert has also stood down as Chief Operating Officer.

Pierre Jungels, CBE, Chairman of Velocys, said:

"The Board is delighted to welcome Henrik as Velocys' new CEO to lead the Company through the planned financing and further development of both the Bayou Fuels biorefinery project in Mississippi and the UK non-recyclable waste to jet fuel project.

"The Board is also delighted Andrew will be moving into an Executive role as Chief Financial Officer. His extensive experience as Chairman, CEO, CFO and Group Finance Director of AIM companies will bring much needed expertise in an executive capacity.

"Henrik's and Andrew's appointments enhance and complement the Company's strong and established senior management team and we all look forward to working with them going forward."

There is no information that is required to be disclosed with regards to the appointment of Henrik Sven Gunnar Wareborn, aged 55, pursuant to Schedule 2 paragraph (g) of the AIM Rules, save as set out below:

Current directorships and partnerships

Marine Energy Limited

Dick Helander AB

Directorships and partnerships held within the past five years

N/A

- Ends -

For further information, please contact:

Velocys Henrik Wareborn, CEO	[phone]
Numis Securities (Nomad and joint broker) Alex Ham Stuart Skinner Jamie Lillywhite Tom Ballard	[phone]
Canaccord Genuity (Joint broker) Henry Fitzgerald-O'Connor Ben Griffiths	[phone]
Camarco (UK financial communications & PR) Billy Clegg Georgia Edmonds Tom Huddart	[phone]
Scoville Public Relations (US public relations) John Williams	[phone] #1

Certain information contained in this announcement would have constituted inside information (as defined by Article 7 of Regulation (EU) No 596/2014) prior to its release as part of this announcement.

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