TIDMQFI
RNS Number : 2911Y
Quadrise Fuels International PLC
08 May 2019
8 May 2019
Quadrise Fuels International plc
("Quadrise", "QFI" or the "Company")
Agency Agreement with Hawazin Regional Trading Company and
Memorandum of Understanding with Hawazin and Aleph Commodities
Limited for Kuwait
Quadrise is pleased to announce that the Company has entered
into an Agency Agreement (the "Agreement") with Hawazin Regional
Trading Company ("Hawazin") and a corresponding Memorandum of
Understanding ("MoU") with Hawazin and Aleph Commodities Ltd
("Aleph").
Hawazin is an investor and provider of expert services to the
oil and gas industry in Kuwait, owned by Ahmad Al-Otaibi and Faisal
Al-Kharafi, and is a major shareholder of Petroleum Dynamics Oil
& Gas (PetroDyn).
Ahmad Al-Otaibi, has significant experience in the oil and gas
sector in the Middle East and is President and CEO of Petrodyn.
Faisal Al-Kharafi is on the Executive Committee of M. A. Al-Kharafi
& Sons (a multinational trading company with annual sales of
over $5 billion) and Chairman of Al-Kharafi Construction KSCC.
The Agreement defines the structure through which Quadrise and
Hawazin will work to combine their expertise on an exclusive basis
to fast-track MSAR(R) projects to long-term commercial agreements
for the production and supply of MSAR(R) technology, services and
fuel in Kuwait, a country covered by both the Co-Marketing and
Project Development Agreement ("CMPDA") with Freepoint Commodities
LLC ("Freepoint") announced by Quadrise on 30 November 2018 and the
Kuwait Services Agreement with Aleph announced on 26 February
2019.
Fees to Hawazin under the Agreement are success-based
commissions, related to a sliding percentage of gross sales
received by Quadrise in Kuwait from the provision of MSAR(R)
technology and services. Hawazin has first right of refusal for any
in-country subcontracting or support services required by Quadrise
on the basis that their proposal is competitive to the
alternatives.
The term of the Agreement is 18 months from signature and will
automatically renew for similar periods unless terminated by either
party or superseded by another agreement.
The MoU with Hawazin and Aleph sets out the principal terms and
conditions on which Quadrise, Aleph and Hawazin are willing to
negotiate binding agreements in order to facilitate MSAR(R)
technology and fuel projects in Kuwait, and the underlying
principles on which definitive transaction documentation will be
based, subject to contract.
The MoU is evergreen, unless terminated by mutual agreement.
The signature of the Agreement and the MoU is the first of the
defined activities in the agreement with Aleph Commodities that was
announced on 26 February 2019 and precede the delivery of a
commercial MSAR(R) project in Kuwait.
As a result, Aleph will now be awarded 5 million warrants to
subscribe for new ordinary shares in the Company, exercisable at
any time until 25 February 2021 at a price per ordinary share equal
to the average mid-market closing price per QFI ordinary share over
the five days ending on and including the day after the date of
this announcement.
Commenting on this development:
Mike Kirk, Executive Chairman of QFI, said:
"We are delighted that following the signature of the agreement
with Aleph on 26 February 2019, we have already been able to meet
the first of the milestones by signing the Agency Agreement with
Hawazin, and the MoU with Hawazin and Aleph. These will enable
Quadrise to accelerate activities in Kuwait and progress towards
the second milestone of announcing a commercial scale trial project
in Kuwait during 2019.
Ahmad Al-Otaibi and Faisal Al-Kharafi, are exactly the partners
required to accelerate our progress in this important market and we
are looking forward to working with them to achieve this."
Ahmed Al Otaibi and Faisal Al-Kharafi of Hawazin, said:
"Hawazin are pleased and honoured to be partnering with QFI for
the introduction of MSAR(R) technology and business expansions in
Kuwait. Hawazin and Quadrise have identified a number of
opportunities in deploying MSAR(R) technology within Kuwait, where
MSAR(R) has obvious economic and environmental advantages over
existing fuel sources.
Looking at the upcoming growth in Kuwait oil, gas and
petrochemicals markets, and the high regional demand for fuels, we
believe that our cooperation will add significant value and a
footprint in Kuwait that will enhance QFI's business in the region
imminently.
We look forward to working closely with Quadrise and Aleph to
commercialise MSAR(R) in Kuwait, and we are confident that MSAR(R)
can be a highly attractive fuel option for power, marine and
upstream applications."
For further information, please refer to the Company's website
at www.quadrisefuels.com, or contact ir@quadrisefuels.com or
phone:
Quadrise Fuels International Plc
Mike Kirk, Executive Chairman +44 (0)20 7031 7321
Jason Miles, Chief Operating Officer
Nominated Adviser
Cenkos Securities plc
Dr Azhic Basirov +44 (0)20 7397 8900
Ben Jeynes
Katy Birkin
Joint Brokers
Peel Hunt LLP
Richard Crichton +44 (0)20 7418 8900
Ross Allister
Shore Capital
Andy Crossley
Daniel Harris +44 (0)20 7601 6108
Public & Investor Relations
FTI Consulting
Ben Brewerton +44 (0)20 3727 1000
Ntobeko Chidavaenzi
Notes to Editors
QFI is the supplier of MSAR(R) emulsion technology and fuels, a
low-cost alternative to heavy fuel oil (one of the world's largest
fuel markets, comprising over 450 million tons per annum) in the
global power generation, shipping, steam and refining
industries.
This announcement is inside information for the purposes of
Article 7 of EU Regulation 596/2014.
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END
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