RCS - Sabien Technology - Further update on b.grn and related matters

Sabien TechnologyAnnouncement

16/05/2023 07:00

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RNS Number : 4906Z  Sabien Technology Group PLC  16 May 2023

16 May 2023

 

Sabien Technology Group plc

("Sabien" or the "Company")

Further update on b.grn and related matters

 

The Board of Sabien Technology Group plc (AIM:SNT), a company focused on a
green aggregation strategy, provides an update on b.grn Group Limited
("b.grn"), the Special Purpose Vehicle (SPV). Formed in partnership with
Parris Group Limited on 21 December 2021, b.grn has made significant progress
in pursuing its waste plastic recycling strategy.

Since this formation, b.grn has engaged actively with the Company's technology
partner, City Oil Field ("COF"), in pursuit of its strategy to develop waste
plastic recycling sites in the United Kingdom and worldwide.

On 2 November 2022, Sabien announced that b.grn had entered into a binding
contract with COF for the supply of the first 24 tonne plastic to oil
recycling plant using COF's Regenerated Green Oil ("RGO") system on a site in
the Midlands region of the UK (the "Midlands").

Further advancing its ambitious plans, on 17 April 2023, Sabien announced the
signing of a significant Memorandum of Understanding ("MOU") between b.grn,
COF, Hanyang Corporation ("Hanyang"), and Woori Technology Inc. This MOU
establishes the intent of the parties to jointly deliver a Recycling Cluster
Project for the Midlands site. The collaboration with these key partners
strengthens b.grn's position in the waste plastic recycling sector.

 

During a recent visit to the UK, Sabien and COF executives met with various
public and private entities to advance this strategy. Notably, two key
agreements were signed, further solidifying the b.grn Group business plan:

 

1.      Sabien - Parris Group - COF Memorandum of Understanding

The existing shareholders of b.grn, Sabien and Parris Group Ltd, have signed a
further Memorandum of Understanding with COF (the "MOU 2").  The MOU 2 sets
out a series of restructuring steps (subject to contract) that will have the
ultimate result of restructuring b.grn in the following way:

·    b.grn will be owned equally by Sabien, Parris Group Ltd and COF (one
third shareholding for each party - currently Parris Group Ltd own 66.67% and
the Company 33.33%);

·    b.grn will hold the rights to manufacture RGO systems under licence
from COF;

·    b.grn will possess an RGO catalyst supply licence with COF; and

·    b.grn will hold an option to invest in COF's equity, potentially
resulting in up to a 10% shareholding subject to a valuation model.

The MOU 2 partners consider that the restructured b.grn will provide an ideal
structure from which to secure a funding partner as a prelude to a worldwide
RGO rollout.

2.    Sabien - COF Intellectual Property Agreement

 

Sabien has signed an agreement with COF regarding future research projects
related to the RGO technology. This agreement grants Sabien the rights to
undertake research projects with leading UK universities to enhance its
understanding of the RGO technology. It also codifies and governs the
respective ownership rights to any new intellectual property arising from the
research.

 

Commenting on these updates, Richard Parris, Sabien Executive Chairman, said:

 

"Sabien is very excited to welcome COF into the b.grn business family and to
lead the economic internationalization of their RGO technology. Over the past
18 months, we have developed a shared vision to spread RGO technology globally
as a key solution to the plastic waste problem. Following our visit to South
Korea in early April, the respective teams have worked diligently to develop a
compelling proposition for external investors. With these additional
agreements signed with COF, and the upcoming research agreement, b.grn is
ideally positioned to secure external investment and launch RGO projects on an
international scale."

 

 For Further Information:

 Sabien Technology Group plc                           +44 20 7993 3700

 Richard Parris, Executive Chairman                    Scott.fulton@sabien.com

 Scott Fulton, Investor Relations

 Allenby Capital Limited (Nominated Adviser)

 John Depasquale / Nick Harriss / Vivek Bhardwaj       +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 (http://www.sabien-tech.com) .

 

Notes to Editors

 

Parris Group and Sabien own 66.67% and 33.33% of the SPV respectively. It has
been registered on Companies House under the name b.grn Group Ltd.

 

Parris Group Limited is owned exclusively by Richard Parris, Executive
Chairman of Sabien, and his family.

 

Sabien's existing agency agreement with COF provides for a revenue stream to
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.

 

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