Quadrise Fuels International : Extension of Contracts with AkzoNobel

Extension of Contracts with AkzoNobel

Released : 26 Nov 2018 07:00

RNS Number : 9307H

Quadrise Fuels International PLC 26 November 2018

Quadrise Fuels International Plc

("QFI", "Quadrise" or the "Company")

Extension of Contracts with AkzoNobel, to ensure continuing exclusive global support for MSAR® projects

Quadrise Fuels International plc (AIM: QFI) is pleased to announce it has extended the contracts for the exclusive supply of goods and services and joint development for future MSAR® projects with AkzoNobel for a further year to November 2019, at which time the parties intend to enter into a new three‐year exclusive global cooperation and supply agreement with new Nouryon legal entities that will be established during 2019.

Nouryon is the new company name for the AkzoNobel Specialty Chemicals Business, following its acquisition by The Carlyle Group on 1st October 2018.

Commenting on this development:

Mike Kirk, Executive Chairman of QFI, said:

"The extension of these contracts with our core technology partner, AkzoNobel (now doing business as Nouryon), reinforces the commitment of both parties to commercialising the global MSAR® business. We are delighted that we have been able to extend the existing contracts to provide the exclusive global supply to Quadrise of the chemicals for the production of MSAR® for a further twelve months alongside the evergreen Joint Development Agreement, with the intention to transfer these rights to Nouryon this time next year for a further three years."

Dr Staffan Asplund, Technical Director at Nouryon, said:

"We have been working with Quadrise for many years and we are pleased to be able to continue supporting their progression. The extension of these contracts builds our long‐standing partnership which has delivered significant technical progress. It is also a great example of how Nouryon is able to deliver a unique, customised surfactant system, that underpins Quadrise's proprietary MSAR® fuel technology that delivers significant benefits for existing producers and users of fuel oils."

Background to the AkzoNobel Agreements:

Quadrise International Limited ("QIL"), the 100% owned operating subsidiary of QFI, is the contracting party for the original agreements signed in November 2013 and extended for a further two years in November 2016:

The "Co‐operation and Exclusive Purchase & Supply Agreement" is between QIL and AkzoNobel Surface Chemistry AB ("ANSC") and defines the commercial relationship relating to the purchase and supply of goods and associated technical services to MSAR® projects in development. QIL buy speciality chemicals exclusively from ANSC, which ANSC supply exclusively to QIL for oil‐in‐water emulsion fuel applications.

The "Joint Development Agreement (JDA)" is with AkzoNobel Chemicals International BV and defines the joint development of new research projects and the protection of intellectual property. The JDA is an evergreen agreement that remains in force until terminated by either party on twelve months' notice.

AkzoNobel Surface Chemistry AB and AkzoNobel Chemicals International BV reside under Nouryon.

Prior to these agreements, Quadrise had an Alliance Agreement with AkzoNobel from 2004 through to November 2013.

This announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

For further information, please refer to the Company's website atwww.quadrisefuels.com or contact:Quadrise Fuels International plc Mike Kirk, Executive Chairman Jason Miles, Chief Operating Officer

Smith & Williamson Corporate Finance Limited Dr Azhic Basirov

Ben Jeynes Katy Birkin

Joint Brokers Peel Hunt LLP Richard Crichton Ross Allister

Stockdale Securities Limited Andy Crossley

Daniel Harris

Public and Investor Relations FTI Consulting

Ben Brewerton Sara Powell

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