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(Alliance News) - Sabien Technology Group PLC on Wednesday said it stands to earn USD1.0 million in commission for every system installed under the terms of an agreement for the UK's first regenerative green oil system.
Sabien Technology is a London-based green aggregation strategy solutions provider.
On October 26, Sabien's previously announced partner City Oil Field Inc, and its 33%-owned special purpose vehicle b.grn Group Ltd, signed a binding contract for the supply of the first 24T City Oil Field regenerated green oil system into the UK.
According to the agreement, b.grn is responsible for securing, funding and developing a suitable site. It is also obliged to procure all necessary equipment from City Oil, who are in turn bound to supply the contracted system at the price set out in the agreement.
Sabien said that b.grn has already initiated a fund-raising round, and formally expressed an interest in a site located in the Midlands, UK. An architect has been commissioned to design the necessary site buildings.
Additionally, b.grn has begun discussions to install regenerated green oil systems in countries outside of the UK. Sabien said it has no liability under the agreement, nor any obligation to provide funding to b.grn.
Subject to b.rgn securing finances, and securing an engineering, procurement, and construction contract with City Oil, Sabien will earn a commission of USD1.0 million upon the successful delivery and installation of each system, according to its sales agency agreement with City Oil.
Sabien will also profit share in b.grn earnings from future operations, in its capacity as a shareholder. However, it is not guaranteed that b.rgn will be able to raise the required funds.
"The signing of the agreement followed a successful visit by executives from COF and the Korean Environmental Corporation to the UK on October 24-26," said Chair Richard Parris.
"After meetings in the Palace of Westminster, a dedicated trade summit, visits with Cambridge and Birmingham Universities, engagements with city councils and the inspection of a target site, the parties to the contract agreed that the time was right to move from a discussion phase to the start of business execution."
Sabien shares were trading 2.7% higher at 12.58 pence each in London on Wednesday afternoon.
By Holly Beveridge; hollybeveridge@alliancenews.com
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