TomCo Energy plc (AIM: TOM) announces that, further to the announcement published by the London Stock Exchange at 2.52 p.m. on 17 June 2020, the Company’s Ordinary Shares have been suspended from trading on AIM under AIM Rule 40 (the “Suspension”).
The Company requested the Suspension pending clarification in respect of the status of Valkor’s agreement with Quadrise Fuels International plc (“Quadrise”) and in relation to Valkor’s rights to use and sub-licence to Greenfield, the JV company formed pursuant to the JV Agreement and in which TomCo has a 50% interest, the Quadrise MSAR® technology (the ” MSAR® Technology”).
TomCo announced on 17 June 2020 (the “Announcement”), details of the Placing and JV Agreement with Valkor, pursuant to which it detailed that Valkor had granted to Greenfield a licence to the MSAR® Technology, for the use on all future plants that are majority owned and operated by Greenfield in Utah. Whilst Valkor does have a binding memorandum of understanding (the “MoU”) with Quadrise, which, inter alia, sets out the steps to be taken by Valkor and Quadrise respectively to put a licence in place for the use of the MSAR® Technology, Valkor does not however, have the ability to grant such a licence to Greenfield at the current time.
Further to the Announcement, the Company is able to confirm that, as set out in the announcement released by Quadrise this morning, Quadrise and Valkor Technologies LLC, a wholly owned subsidiary of Valkor, are continuing discussions concerning:
· a commercial trial of the MSAR® Technology at Petroteq’s existing oil sands plant at Asphalt Ridge, Utah, which is subject to the Work Order (“Phase 1”); and the development of commercial MSAR® plants of up to 10,000 bopd (“Phase 2”).
The Company has been informed that Quadrise and Valkor continue to believe that the use of the MSAR® Technology can add significant value to the development of heavy and paraffinic oil deposits in Utah. Quadrise has confirmed that it has agreed in principle with Valkor to the deployment of MSAR® trial equipment for Phase 1 at a price of up to US$150,000, which has been taken into account in Greenfield’s budget for Phase 1. Quadrise has confirmed that it will to continue to work in good faith to finalise the process design and a trial agreement for Phase 1 with Valkor, including the terms of the scope and timing of the trial.
In parallel with Phase 1, Quadrise and Valkor will continue to cooperate in good faith to agree the commercial terms of a conditional MSAR® licence and commercial supply agreement for the production of MSAR® fuel under Phase 2. Quadrise has agreed with Valkor that any licence ultimately granted to Valkor under the terms of the MoU will be limited to the deployment of the MSAR® Technology in Utah, USA in connection with the processing of sweet heavy or paraffinic crude oil and will be capable of being assigned to Valkor group joint ventures, including Greenfield, in the future.
A conditional licence will only be finalised upon, and following, inter alia, satisfactory results of the Phase 1 trial testing, the agreement between the parties as to Phase 2 commercial terms, and the entry of binding agreements.
Status of the Placing
As a result of the above, the Company confirms that it is in discussion with the Company’s broker regarding the status of the Placing and will provide a further update to shareholders as soon as possible and confirms that, in the meantime, the Ordinary Shares will remain suspended from trading on AIM.
Unless otherwise defined herein, capitalised terms used in this announcement shall have the same meanings as given to them in the Announcement.
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