LONDON (Alliance News) - Quadrise Fuels International PLC on Wednesday said it has entered an agency agreement with Hawazin Regional Trading Co and memorandum of understanding with both Hawazain and Aleph Commodities Ltd.
Hawazin is an investor and also provides services to the oil and gas industry in Kuwait. It is also a major shareholder of Petroleum Dynamics Oil & Gas.
Quadrise and Hawazin will, on an exclusive basis, work to fast-track Quadrise's MSAR heavy fuel oil replacement products "to long-term commercial agreements". The agreement will also see the two companies working together to produce and supply MSAR technology, services, and fuel in Kuwait.
Quadrise will pay its fees to Hawazin as "success-based commissions" which will relate to a sliding percentage of the gross sales received by Quadrise in Kuwait from MSAR. Hawazin possesses first right of refusal for any subcontracting or support services required by Quadrise in Kuwait.
The agreement's term is 18 months and it will automatically renew unless terminated or replaced by a new agreement.
The memorandum of understanding, meanwhile, sets out the terms and conditions for Quadrise, Aleph, and Hawazin to negotiate binding agreements over MSAR in Kuwait. It is evergreen, persisting unless mutually terminated.
The agreement and memorandum of understanding satisfies conditions of a separate agreement between Quadrise and Aleph. Quadrise, as result, will issue 5 million share warrants to Aleph which can be exercised at any time before February 2021.
Quadrise Executive Chair Mike Kirk 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 [memorandum of understading] 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."
Shares in Quadrise were up 2.7% at 3.21 pence on Wednesday afternoon.
