Quadrise Fuels has announced its audited final results for the year ended 30 June 2016 and gives notice for the convening of an Annual General Meeting (AGM) of the company to be held on 2 December 2016.
Quadrise Fuels International plc is the emerging supplier of MSAR® emulsion technology and fuel, enabling a low cost alternative to heavy fuel oil (one of the world’s largest fuel markets, comprising over 450 million tons per annum) in the global shipping, refining, and power generation markets. The company has announced its audited final results for the year ended 30 June 2016 and gives notice for the convening of an Annual General Meeting (AGM) of the company to be held on 2 December 2016. In a separate statement issued today, the company announces a proposed fundraising, by way of a proposed placing of new ordinary shares in the company, to raise approximately £4.0 million (the Placing) and a proposed open offer of further new ordinary shares to existing QFI shareholders in order to raise up to an additional £1.0 million (the Open Offer).
Operational highlights for the period and since year end
Marine Operational and LONO Trial commenced in July 2016 and is progressing well with positive initial feedback from Maersk.
- MSAR® production facility at CEPSA refinery operational within 9 months of contract signature.
- The completion of the trial expected by mid-2017.
- The possibility of an interim assessment in early 2017.
- The commencement of commercial rollout targeted for the second half of 2017 (2H17).
Power Operational Trial MoU signed with the Kingdom of Saudi Arabia in August 2016.
- Commencement of the combustion trial currently anticipated before the end of 2017.
- The experience of delivering a commercial scale MSAR® production facility at the CEPSA refinery provides confidence in the envisaged timetable.
Continued engagement with a number of oil majors and regional power companies to pursue opportunities for the production and use of MSAR®.
- Positioned to implement commercial roll-out.
- Enhanced operational resources and continued investment in in-house research facility, alongside continuing collaboration with University of Surrey.
- Extension of company agreements with Akzo Nobel.
- No debt and £4.3 million in cash reserves at 30 June 2016 (30 June 2015: £8.4 million), expected to be bolstered further by approximately £4.0 million through the announced Placing, and up to a further £1 million through the intended Open Offer to existing QFI shareholders.
- Loss after tax of £4.8 million (2015: £4.9 million) of which £0.8 million (2015: £2.3 million) relates to non-cash charges for share options and adjustments to available for sale investments.
- Cumulative tax losses of £41.1 million (2015: £40.7 million) available for set-off against future profits.
- Total assets of £8.8 million at 30 June 2016 (2015: £12.6 million), which includes further investment in the group’s own comprehensive research and development (R&D) and operations support facility as well as the balance payment for a commercial-scale MSAR® manufacturing unit.
Significant events post year end
On 10 August 2016, the company announced the execution of a Memorandum of Understanding (MoU), which defines the basis of collaboration between Quadrise and its clients in the Kingdom of Saudi Arabia (KSA) to progress a ‘Production to Combustion’ trial at designated refinery and power plant facilities within the KSA.
On 14 September 2016, the company announced the extension of its contracts for the exclusive purchase and supply of goods and services and for the exclusive joint development of emulsion fuels with AkzoNobel group companies. The contract extensions ensure the continuity and ongoing support from AkzoNobel for the commercialisation of MSAR® projects globally until at least November 2018.
As separately announced, the company is proposing to raise approximately £4 million through a Placing of new ordinary shares in the company. Given the longstanding support that shareholders, including a large number of private shareholders, have provided to the company over an extended period, the board believes that it is appropriate that existing QFI shareholders are provided with the opportunity to participate in the further issue of new equity in the company at the same price as is available to institutional and other investors under the placing. As a result, the company intends to launch an Open Offer to qualifying shareholders to raise up to a further £1 million shortly. A further announcement will be made in this regard in due course.
Read the article online at: https://www.hydrocarbonengineering.com/refining/12102016/quadrise-fuels-releases-results/