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Hydrodec issues production update on Canton facility

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Hydrocarbon Engineering,


Hydrodec Group plc has announced that trains 5 and 6 at its plant at Canton, Ohio, have been successfully started and brought into production. This is an important milestone and means that all six trains at the Canton plant have now been brought into service. The company maintains its production projections for Canton for the current year at 10 million l of processed oil and continues to anticipate the Canton plant to be cash generative from an operating perspective by the end of 2015.

Further to this milestone and in line with the company’s intention to support its short term working capital position, and ensure that it remains adequately funded during the important ramp up of production at Canton, Hydrodec has announced that:

  • It has entered into an agreement to extend its £1.35 million secured working capital facility with Andrew Black, a Non-Executive Director, which was announced on 21 October 2015 (the Original Facility). Andrew Black has agreed to extend the Original Facility by £800 000 to £2.15 million and otherwise on the same terms as the Original Facility other than the final maturity date for the Original Facility has been extended to 31 December 2017 (the Increased Existing Facility). The Increased Existing Facility is secured over the company's licence of and rights to develop the CEP lubricant oil re-refining technology in the UK. As at 30 June 2015, the carrying value of that licence in the company's accounts was US$2 million.
  • It has entered into an additional working capital facility (the Additional Facility) with Andrew Black. The Additional Facility is for up to £2.0 million with interest payable at 8%/y on drawn down funds, has an arrangement fee of 2.5%, is otherwise on normal commercial terms and with a final maturity date of 31 December 2017. The Additional Facility is secured over the rights for Hydrodec Development Corporation Pty Ltd to receive income based on the quantity of SUPERfineTM oil produced by Hydrodec of North America LLC and Hydrodec of Australia Pty Ltd respectively, which royalty, based on average annual production, is estimated to generate approximately US$1 million/y. As at 30 June 2015, the carrying value of that licence in the Company's accounts was US$3.5 million.

Adapted from press release by Rosalie Starling

Read the article online at: https://www.hydrocarbonengineering.com/refining/02122015/hydrodec-issues-production-update-on-canton-facility-1871/


 

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