Termination of Discussions - Execution of LOI

RNS Number : 7846N

Curzon Energy PLC

03 February 2021

 

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

03 February 2021

Curzon Energy Plc
("Curzon" or the "Company")

Termination of Transaction Discussions - Execution of LOI

Curzon Energy Plc (LON:CZN), the London Stock Exchange listed oil and gas company, announces it has informed Sun Seven Stars Investment Group ("SSSIG") of the formal termination of the Letter of Intent, first announced on 18 March 2020.  As the period of exclusivity with SSSIG had already expired, no further obligations remain among the parties. 

The Company further announces the execution of a Letter of Intent ("LOI") with Poseidon Enhanced Technologies Limited ("PET").  The Company will now enter an initial period of exclusivity with PET during which each party will conduct due diligence on the other.  The parties have agreed that during this period they will work towards the execution and delivery of a definitive purchase agreement, contemplating a reverse takeover of Curzon by PET ("RTO"), which will be conditional upon receipt of the required regulatory approvals from the FCA and its primary market functions, among other matters. 

For providing PET with an initial period of exclusivity, lasting through to 28 February 2021, PET will lend the Company an initial amount of 65,000 in the form of a one-year loan Note (the "Note"), carrying an annual interest rate of 10% per annum, and convertible at the price of any subsequent share issue alongside the contemplated RTO transaction.  Under the terms of the Note, a total of £500,000 is authorised to be made available to the Company through mutually agreed drawdowns.  Any additional drawdowns, including in relation to potential ongoing exclusivity, will be deducted from this total authorised amount as they are made. 

After 1 March 2021, further loan funds may be made available by PET to the Company if the envisaged transaction continues to progress, or in order to extend the initial period of exclusivity beyond 28 February 2021. 

A potential transaction, if completed, would constitute a reverse takeover under the Listing Rules.  As the Company is currently unable to provide full disclosure on the potential transaction, it has requested to retain a temporary suspension of listing in its ordinary shares, pending further progress on agreeing terms on the potential transaction.

The Company will continue to update the market on progress as appropriate.

About Poseidon Enhanced Technologies

Poseidon aims to provide the lowest-cost solution for the food and beverage industry to achieve its goal of reducing the use of virgin PET* and single-use plastics.  Poseidon's mission is to convert waste PET into 100% recycled feedstock for the global food-grade PET packaging and fibre industries, utilising its patented environmentally-friendly chemical recycling process.

Poseidon's proprietary chemical recycling technology is designed to process all 'waste' PET plastic, including previously unrecyclable plastics such as coloured bottles, trays, fibre and films, converting them directly into Poseidon rBHET™, an interim feedstock for the global PET industry, thereby completing a Circular Economy.  Poseidon is currently developing its recycling technology at its facilities at Teesside, UK and is planning an industrial scale roll-out which is expected to be facilitated by the listing process and an associated capital raise.   

* Virgin Polyethylene terephthalate produced from crude oil

 

For further information please contact:
Curzon Energy Plc	[phone]
Scott Kaintz
www.curzonenergy.com
SP Angel Corporate Finance LLP	[phone]

Broker

 

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