RE: FAQs Updated17 Jan 2019 12:27
Co-Marketing & Project Development Agreement
Fri, 30th Nov 2018 07:00
RNS Number : 9849I
Quadrise Fuels International PLC
30 November 2018
30 November 2018
Quadrise Fuels International plc
("Quadrise", "QFI" or the "Company")
Co-Marketing and Project Development Agreement with Freepoint
Quadrise is pleased to announce that the Company has entered into a Co-Marketing and Project Development Agreement ("CMPDA") with Freepoint Commodities LLC ("Freepoint").
Freepoint, which is based in Stamford, Connecticut, is both an established global merchant of physical commodities and a financer of upper and mid-stream commodity-producing assets. Freepoint also provides physical supply services and related structured solutions for counterparties located throughout the world.
The CMPDA provides a clearly defined structure for Quadrise and Freepoint to work together to progress MSAR® projects to long-term commercial agreements for the production and supply of MSAR® fuel to defined territories and counterparties on an exclusive basis. The preferred business model for both parties under the CMPDA is to 'Build Own and Operate' ("BOO") a facility jointly, to purchase residual streams under long-term contracts from a refiner and enter into back to back contracts with other counterparties for the supply of MSAR® fuels. Financial returns under the CMPDA are based on the respective party's contributions to bringing the project to fruition.
Building on the concepts established under the Memorandum of Understanding signed in July 2018, now under the CMPDA, Quadrise and Freepoint will investigate and pursue a carefully selected and mutually agreed list of MSAR® project opportunities. The parties will initially focus on the Americas, the Middle East and Asia, with the intention of jointly investing in projects on a BOO basis. In addition, there may be circumstances where a decision is taken by both parties to pursue a project on a tolling or licensing basis and the CMPDA defines the relevant participation of the parties in those circumstances. If QFI chooses not to participate in a project targeted by the CMPDA, the Company will grant Freepoint a licence to QFI's technology to build and operate a project on a site-by-site basis. The term of the CMPDA is 36 months, after which time it will continue unless terminated by either party with 24 months' notice.
Commenting on this development:
Mike Kirk, Executive Chairman of QFI, said:
"We are delighted that through this new agreement we now have a clear path to progressing commercial opportunities. This will be on a collaborative basis, with a preferred business model which materially increases the returns captured by the parties from MSAR® projects with the tolling or licensing models also available within the agreement as alternatives. The board looks forward to realising the commercial benefits from the complementary skills, market positions and in-depth knowledge of Quadrise
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