REG - Sabien Technology - Agreement for Establishment of SPV

Sabien TechnologyAnnouncement

22/12/2021 07:00

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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                       +44 20 7993 3700

 Richard Parris, Executive Chairman

 Allenby Capital Limited (Nominated Adviser)       +44 20 3328 5656

 John Depasquale / Nick Harriss / Vivek Bhardwaj

 Peterhouse Capital Limited (Broker)               +44 20 7469 0930

 Duncan Vasey / Lucy Williams

 

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

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