Quadrise: Final Results and Notice of AGM
Quadrise (AIM:QED), the supplier of MSAR® and bioMSAR™ emulsion technology and fuels, providing innovative lower cost and lower carbon alternatives to fuel oil and biofuels, is pleased to announce its audited final results for the year ended 30 June 2023.
The Company also gives notice that the Company’s Annual General Meeting (“AGM”) will be held at 12 noon on 27 November 2023 at the Park Plaza County Hall Hotel, 1 Addington Street, London, SE1 7RY.
· Marine – Following the completion of key preparatory steps for the Proof-of-Concept and Letter Of No Objection (“LONO”) commercial trials on bioMSAR™ with MSC Shipmanagement during the year, Quadrise intends to conclude agreements with project stakeholders, which include a major global trading company, as soon as possible. Quadrise equipment will be installed and commissioned at the bunker terminal site ahead of the commercial-scale Proof-of-Concept and LONO trials on bioMSAR™, which are expected to commence in Q1 2024 provided the relevant permits are received in time.
· Morocco -The industrial demonstration test at the client site in Morocco is now expected to be completed in October 2023, following the installation and commissioning of a replacement pump and maintenance of the client’s commercial unit during September. The client remains supportive of the Company’s efforts to progress the commercial trial. Upon successful conclusion of the trial, the parties will enter into discussions for potential commercial supply, in addition to concluding agreements for testing at other client sites as required.
· Utah – Valkor Technologies LLC (“Valkor”) has informed the Company that it expects to conclude project ﬁnancing relating to their primary project site at in Utah in Q4 2023. Provided a minimum of US$15 million is successfully raised, Valkor will pay Quadrise US$1.0 million under the terms of the Site License and Supply Agreement signed in June 2023. The Agreement was amended in August 2023 in order to remove conditionality with regard to Valkor’s receipt of drilling permits. A further US$0.5 million is due from Valkor upon delivery of an MSAR® Manufacturing Unit to the project site in Utah, again, subject to Valkor’s receipt of the minimum project financing.
· bioMSAR™ – In June 2023, Quadrise signed a Joint Development Agreement with BTG Bioliquids to investigate the use of their propriety pyrolysis bio-oil (FPBO) as an alternative biofuel feedstock for bioMSAR™. In addition, Quadrise successfully produced stable blends of bioMSAR™ containing up to 40% of Vertoro’s crude sugar oil (CSO™) at pilot scale at the Company’s research facility. This demonstrated improved engine efficiency, and lower NOx and particulate emissions upon combustion when compared to conventional diesel. Further testing is also ongoing with other biofuels suppliers.
· Loss after tax of £3.1m (2022: £2.6m), of which of £1.7m (2022: £1.5m) is attributable to production and development costs and £1.3m (2022: £1.4m) relates to administrative and corporate expenses.
· Total assets of £5.0m as at 30 June 2023 (2022: £8.0m).
· Cash balances as at 30 June 2023 of £1.3m (2022: £4.4m). An additional £1.94m (gross) was raised in July 2023 via a placing and open offer.
· Cumulative tax losses of £62.1m (2020: £60.0m) potentially available for set-off against any future profits.
Jason Miles, Chief Executive Officer of Quadrise, commented:
“The decarbonisation of the energy sector continues to advance during a period of escalating energy costs, increasing legislation and pressure to reduce emissions and control global warming.
Against this background, Quadrise is positioning itself to be one of the key decarbonisation solution providers in this rapidly changing global energy market.
Whilst progress across each of the Company’s key projects during the period has been at a slower pace than we had initially envisaged, important milestones for each are now nearing. Agreements covering our commercial vessel trial with MSC and other stakeholders are expected to be signed in Q4 2023, with the trial itself planned to commence in Q1 2024. Supply of our first MSAR® site license and equipment to Valkor in Utah is expected in Q4 2023, pending successful conclusion of Valkor’s project financing. Following the installation of an alternative pump, the MSAR® and bioMSAR™ commercial trial in Morocco is due to conclude before the end of October 2023.
We continue to invest and collaborate in research and development to enhance our IP portfolio and future opportunities, evidenced by our patent applications and the continuing advancement of bioMSAR™ and bioMSAR™ Zero with a growing number of partners in the renewable fuel sector.
We look forward to the important period ahead during which we expect to make significant progress in commercialising our innovative fuel technology.”
Source: Quadrise Plc