TIDMSNT
RNS Number : 3626A
Sabien Technology Group PLC
01 February 2022
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF REGULATION 11 OF THE MARKET ABUSE (AMENDMENT) (EU EXIT)
REGULATIONS 2019/310.
1 February 2022
Sabien Technology Group plc
("Sabien" or the "Company" or the "Licensee")
Update on Licence agreement with Proton Technologies Canada
Inc.
The Board of Sabien Technology Group plc (AIM:SNT), a Company
focused on a Green Aggregation Strategy, announces today that it
has signed a Licence Agreement (the "Agreement") with Proton
Technologies Canada Inc., ("Proton" or the "Licensor") in relation
to a hydrogen processing licence within UK territories and an
option over the construction and operation of a City Oil Field
("COF") facility located on Proton's site in Saskatchewan, Canada.
This follows on from the signed Heads of Terms announced on 11
November 2021.
The key elements of the Agreement are:
1. Proton grants to Sabien a non-transferable, non-exclusive
license to use and exploit any and all of Proton's Technology
Rights, for producing up to 20 tonnes of hydrogen per day in total,
within the onshore areas of the United Kingdom (Great Britain and
Northern Ireland) and the offshore areas within United Kingdom
Territorial Waters for the purpose of making hydrogen and
sequestering carbon using the processes provided for within the
Proton's patents and intellectual property (the "License"). The
Licence is non-transferable except to majority owned or controlled
subsidiaries of the Licensee or in all other cases by written
unanimous consent of the directors of the Licensor. Quantities of
hydrogen to be recorded by Sabien and reported to Proton on a
monthly basis.
2. Proton hereby grants an option to install an initial 24
tonnes per day, and up to 120 tonnes/day COF recycling plant (the
"Facility") on the Licensor's site in Saskatchewan, Canada (the
"Site"), the Facility is to be developed and operated through a
special purpose vehicle, in which it is anticipated that Sabien
will hold a minority equity position (the "SPV"), the SPV is to be
externally funded. The parties acknowledge and agree that:
-- installation of the Facility at the Site is subject to
regulatory approval (environmental and planning), which will be
applied for when commercially expedient;
-- subject to receiving such approvals, the parties shall enter
into an agreement (the "Facility License"). Subject to contract,
the parties have agreed in principle that, under the terms of the
Facility License, the SPV will pay to Proton a royalty on the same
basis as the hydrogen royalty set out in the Agreement, based on
the oil produced or consumed by the Facility;
-- Sabien may appoint third party contractors to install the
Facility at the Site on terms to be agreed between Sabien, Proton,
and such third party; and
-- the rights granted to the Sabien are at the option of the
Licensee. In the event that the Approvals are not granted (or are
subject to conditions not commercially viable to Sabien) then
Sabien is not obliged to install the Facility at the Site.
3. Proton to provide all necessary technical assistance to
validate suitable sites and to provide advice on establishing and
operating the installation.
4. Consideration of GBP100,000 in cash. The royalty payable to
Proton is US$0.05 per kg or H2 extracted and 2% of the value of any
CO2 derived, offsetable against the cash consideration already
paid, with minimum royalty payments of US$25,000 per annum from
year 5; and
5. 280,000 warrants to be issued with exercise price of 60 pence
per ordinary share of 3 pence each with an expiry date of 19
February 2023. The quantum of warrants was agreed as if the
GBP100,000 cash consideration was paid in shares on a 1:1 basis at
a share price of 35.7p.
Commenting on the Proton licence deal, Richard Parris, Executive
Chairman, said:
"Sabien is delivering on its strategy of building a portfolio of
operations which, in combination, provide critical elements of the
transition to a Green Economy. Following Sabien's initial
investment in Proton announced 14 October 2021, the Board is
pleased to have now concluded this significant licence deal with
Proton. This Agreement provides Sabien with an entry into the UK
hydrogen market, secures a North American commercial entry for
Sabien and helps to cement our relationship with City Oil Field of
Korea".
Further Information:
Sabien Technology Group plc
Richard Parris, Executive Chairman +44 20 7993 3700
Allenby Capital Limited (Nominated Adviser)
John Depasquale / Nick Harriss +44 203 328 5656
Peterhouse Capital Limited (Broker)
Duncan Vasey / Lucy Williams +44 207 469 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-tech.com
Further information on Proton Technologies Canada Inc., can be
viewed at Lowest cost Hydrogen with Zero Emissions.
(proton.energy)
A copy of the JS Global Advisory report is available on the
Company's website at
https://sabien.com/wp-content/uploads/2021/11/Clear-Hydrogen-in-UK-.pdf
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END
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