Agreement for Establishment of SPV

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 £149k and £74k respectively, in addition to the initial share capital of £1k. 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 £75k, 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	[phone]
Allenby Capital Limited (Nominated Adviser) John Depasquale / Nick Harriss / Vivek Bhardwaj	[phone]
Peterhouse Capital Limited (Broker) Duncan Vasey / Lucy Williams	[phone]

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

 

END

 

 

AGRUAVARAUUUUUA