LONDON (Alliance News) - Shares in Graphene NanoChem PLC were up 14% Wednesday morning after it said it had inked a 3-year agreement with Temasek Growth Sdn Bhd for the production of bleached deodorised palm oil at its Lahad Datu Plant in Sabah, Malaysia.
The agreement will commence in the first quarter of 2016, and is expected to generate revenue of around GBP500,000 during its first year, with a planned production ramp up in the second and third year.
Elsewhere, Graphene NanoChem said it has been progressing talks with its financiers on the restructuring of its debt facilities, and in the meantime has continued to implement "prudent measures" to conserve its cash. The company said it continues to evaluate "all options" with the aim of raising additional funds.
"We are pleased to be able to leverage on the capacity of our Lahad Datu Plant to generate a new revenue stream for the group. We are also grateful for the commitment of our financiers to working with the group to achieve an acceptable terms of the restructuring of our bank debt and we are confident that the successful completion of the same will position the group well for future growth," said Chief Executive Officer Jespal Deol in a statement.
Shares in Graphene NanoChem were up 14% at 12.00 pence Wednesday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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