REG - Sabien Technology - Licence agreement with Proton Technologies Canada

Sabien TechnologyAnnouncement

01/02/2022 14:45

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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 £100,000 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 £100,000 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                  +44 20 7993 3700

 Richard Parris, Executive Chairman

 Allenby Capital Limited (Nominated Adviser)  +44 203 328 5656

 John Depasquale / Nick Harriss

 Peterhouse Capital Limited (Broker)          +44 207 469 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-tech.com (http://www.sabien-tech.com)

Further information on Proton Technologies Canada Inc., can be viewed at
Lowest cost Hydrogen with Zero Emissions. (proton.energy)
(https://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
(https://sabien.com/wp-content/uploads/2021/11/Clear-Hydrogen-in-UK-.pdf)

 

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