Significant agreement signed with EPS
13/01/2025 07:00
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RNS Number : 9627S SulNOx Group PLC 13 January 2025
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF REGULATION
11 OF THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS 2019/310
13 January 2025
SulNOx Group Plc
(the "Company" or "SulNOx")
Significant agreement signed with EPS
Shipping giant invests in SulNOx and adopts SulNOxEco(TM) on minimum 30
vessels
(Aquis Stock Exchange: SNOX)
The board of directors of the Company (the "Board") is pleased to announce the
signing of a significant agreement with Eastern Pacific Shipping Pte Ltd
("EPS"), one of the world's largest privately-owned shipping companies (the
"Agreement"). This milestone Agreement encompasses both investment into
SulNOx and a major new product supply contract for its SulNOxEco(TM) fuel
conditioner ("SulNOxEco"). Established in 1964 and headquartered in
Singapore, EPS employs approximately 6,000 people worldwide and manages a
diverse fleet of over 300 vessels on water and on order. The Agreement
follows an extensive eight-month successful evaluation of SulNOxEco on
various EPS-managed vessels including container ships, tankers, bulk and gas
carriers.
Under the Agreement, EPS will adopt SulNOxEco on a minimum of 30 vessels for a
minimum of 18 months use per vessel. EPS will also provide information in
relation to the results of the evaluation, which the Company will be able to
use in its marketing activities, along with the ongoing support of EPS. In
addition, EPS will also collaborate with and act as an introducer for
SulNOxEco, to some of the world's largest shipping companies. The Agreement
itself will generate significant revenue and secure committed minimum product
volumes of 250,000 litres. Further, the Board anticipates attracting
additional customers and driving substantial further revenue growth.
In addition, EPS Ventures Pte. Ltd. ("EPSV") will become a strategic
shareholder in SulNOx. EPSV will subscribe for a total of up to 11,692,025
new ordinary 2 pence shares ("Ordinary Shares") at a price of 2 pence per
Ordinary Share in tranches to be issued on the payment for purchase of
SulNOxEco by EPS during the initial 18 months of the Agreement (the
"Subscription"). The proceeds from the Subscription will be used for general
working capital purposes. Once fully issued, the Subscription shares would
equate to a maximum of 8.5% of the enlarged issued Ordinary Shares (assuming
no other issues of Ordinary Shares).
EPSV will also subscribe for a total of up to a further 4,719,795 Ordinary
Shares at a price of 2 pence per Ordinary Share over a maximum of 3 years
based on successful introductions of large shipping customers to the Company.
This would equate to a maximum further 3.3% of the enlarged issued Ordinary
Shares (assuming the completion of the Subscription but no other issues of
Ordinary Shares).
Cyril Ducau, Chief Executive Officer of EPS commented, "This partnership with
SulNOx is a significant step towards achieving EPS's long-term sustainability
objectives. By enhancing our operational efficiency and reinforcing our
commitment to meeting global environmental standards, this collaboration
further solidifies our position as a proactive leader in sustainable shipping
practices."
Radu Florescu, Chairman of SulNOx, added, "Signing the marquee shipping name
of EPS after an extensive evaluation period proves the effectiveness of SulNOx
products beyond doubt at a time when the industry is crying out for solutions
to reduce fuel consumption and associated emissions against a backdrop of
increasing regulation. With this partnership, not only have we secured
substantial, committed revenues, but there is also significant additional
potential revenue from EPS' introductions to some of the world's largest
fleets. This transaction marks a new and transformative era for the SulNOx
Group, and we look forward to a long and mutually beneficial partnership with
EPS, delivering the energy transition together."
- Ends -
For further information please contact:
SulNOx Group plc Tel: 07624 491 821
Steven Cowin, CFO
Allenby Capital Limited Tel: 020 3328 5656
(AQSE Corporate Adviser)
Nick Harriss / John Depasquale
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