REG - Velocys PLC - Successful close-out of ENVIA JV

VelocysAnnouncement

29/04/2019 07:05

RNS Number : 3224X
Velocys PLC
29 April 2019
 


News release
 
Velocys plc             
 
("Velocys" or "the Company")
 
29 April 2019
 
 
Successful close-out of ENVIA JV
 
Velocys Plc, (VLS.L) is a minority equity stakeholder of and the senior secured lender to ENVIA Energy, LLC (ENVIA). Velocys announces it has agreed with ENVIA and the other ENVIA joint venture partners to transfer rights of the site from ENVIA to another ENVIA JV partner in return for payment of $4.15m to Velocys. As part of the agreements, ENVIA will sell certain parts of the site infrastructure and remove the remaining equipment from the site. Velocys also releases its liens on all equipment from the site in return for a significant recovery under its collateralised loan note to ENVIA.
 
A total of $2.15 million has already been received by Velocys and an additional $2 million will be paid upon the completion of several performance milestones related to the removal of equipment.
 
Henrik Wareborn, CEO of Velocys, said:
 
"We are pleased to have worked collaboratively with the other ENVIA joint venture partners on a mutually beneficial solution, allowing the ENVIA site to be repurposed to a renewable natural gas plant and for Velocys to get a fair reimbursement for its financial contributions to ENVIA, during the strategically critical demonstration of the new full scale Velocys FT reactors over the last two years.
 
We continue to focus our attention, resources and assets on the development of our two
commercial scale biorefineries in Immingham, UK and Natchez, Mississippi.  We are leveraging all the experience and evidence embedded in the two Velocys microchannel FT reactors from ENVIA, which recently were returned to Velocys in Ohio, upon the completion of the commercial scale production run".
 
For further information, please contact:




Velocys
Henrik Wareborn, CEO


+ 44 1235 838621




Numis Securities (Nomad and joint broker)
Alex Ham
Stuart Skinner
Tom Ballard


+44 20 7260 1000




Canaccord Genuity (Joint broker)
Henry Fitzgerald-O'Connor
Ben Griffiths


+44 20 7523 8000




 


 




Camarco (UK financial communications & PR)
Billy Clegg
Ben Woodford
Tom Huddart


+44 20 3757 4983




Scoville Public Relations (Velocys US public relations)
John Williams


+1 206 625 0075 #1




 
Certain information contained in this announcement would have constituted inside information (as defined by Article 7 of Regulation (EU) No 596/2014) prior to its release as part of this announcement.
 
www.velocys.com




This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
END
 
 
MSCSEIFUAFUSELL