Welcome!

News Feed Item

Oxford Catalysts Group plc: 135p Per Share New Share Purchase, Reactor Order and Access Agreement

LONDON, November 19, 2012 /PRNewswire/ --

Highlights

  • Purchase of 933,687 new Group shares at 135p per share by an affiliate of Ventech Engineers
  • 44% premium to the closing mid-market share price on 16 November 2012
  • Raises £1.3 million for the Group
  • Agreements signed with Ventech:
  • Oxford Catalysts will be Ventech's preferred supplier of FT technology for North America
  • Ventech will have non-exclusive assured access to the Group's FT technology for North America
  • Ventech is required to place an order with the Group for FT reactors for the first commercial facility by 29 March 2013, estimated at $8 million
  • Ventech has several customers expected to decide on proceeding with plants in 2013
  • Ventech has $200 million available to co-invest in customer projects, including GTL

Oxford Catalysts Group (OCG.L), the modular Gas-to-Liquids technology innovator, is pleased to announce that Ventech Project Investments LP ("VPI"), an affiliate of Ventech Engineers LLC ("Ventech"), has subscribed for 933,687 new ordinary shares of 1 pence each ("Ordinary Shares") at a price of 135p per share (the "Subscription"). The Subscription has raised £1.3 million for the Group.

Ventech, headquartered near Houston, Texas, is a global leader in the design and construction of modular refineries, and an early pioneer of modular Gas-to-Liquids (GTL) plants. Ventech's manufacturing complex specialises in completely assembled and tested modules that are easily transported by truck, rail, and barge.

Alongside the Subscription, Velocys, Inc., the Group's US subsidiary, has entered into a series of agreements with Ventech whereby it will be Ventech's preferred supplier of Fischer-Tropsch (FT) technology in North America, and Ventech will have non-exclusive assured access to design, sell and deliver GTL plants incorporating the Group's FT product to customers in North America (subject to certain diligence requirements being met by Ventech).

Ventech is committed to offering modular GTL plants to its customers using the Group's technology. It will fulfil future GTL orders using its 200,000 sq. ft. fabrication facility near Houston, which has been recently expanded to support expected growth in orders. Furthermore, through VPI, Ventech has $200 million in available capital to make equity investments in energy projects, and expects to co-invest in initial customer GTL plants.

In addition, as part of the agreements, Ventech is required to place an order for FT reactors with the Group, by 29 March 2013, and Ventech has indicated that it is confident it will do so. The order will be for FT reactors for the first commercial GTL plant, to be delivered eighteen months after the order is placed. The expected revenue to the Group from this order is approximately $8 million. At the time when these reactors are transferred to the ultimate customer, the Group expects to receive additional license and catalyst revenues.

The Group and Ventech have been working closely together for over a year. In collaboration with the Group, Ventech has developed the design for a fully integrated, shop fabricated, modular GTL plant. On top of the project with Calumet Specialty Product Partners, L.P. for an approximately 1,000 bpd GTL facility at their Karns City, Pennsylvania site (announced on 7 September 2012), Ventech has several other client-funded engineering studies underway for GTL plants in North America where decisions to proceed are expected in 2013.

Roy Lipski, CEO of Oxford Catalysts Group, said:

"Today's transaction solidifies our relationship with Ventech and provides further validation of our technology, business model and valuation. With their decades of modularisation experience, global customer base, and strong commitment to GTL, Ventech is a great partner for Oxford Catalysts. The 44% premium to the mid-market price paid by Ventech provides a timely reminder of the significant potential upside that industry sees in Oxford Catalysts.

"Ventech's willingness to co-invest with clients, and the $200 million they have available for such activities, provides substantial comfort to early adopters and is proving a strong boost to the sales effort. Furthermore, their firm intention to purchase reactors for a commercial facility, by 29 March 2013 - potentially ahead of a client order, is a great vote of confidence and will help kick-start our manufacturing supply chain."

Kevin Stanley, CEO of Ventech Engineers, said:

"As the world's leader in the design and manufacture of modular process plants, we view the GTL market as a significant opportunity. After an extensive search of available technologies we identified Oxford Catalysts' FT product as the leading offering in the industry for modular GTL plants. There are strong synergies between the Group's technology and Ventech's strengths and expertise in modular process plants. We are delighted to be moving our relationship with Oxford Catalysts to the next stage and look forward to building a leading position with them in the fast emerging market for smaller scale GTL in North America."

Each new Ordinary Share will rank pari-passu with all existing Ordinary Shares. Application has been made for the new Ordinary Shares to be admitted to trading on AIM; it is expected that such admission will be effective as at 8 am on 19 November 2012. The Company's total issued share capital after admission of the new Ordinary Shares will be 91,333,678 Ordinary Shares. The Company does not currently hold any shares in treasury. This figure of 91,333,678 Ordinary Shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FSA's Disclosure and Transparency Rules. 

There will be a conference call for analysts at 8:30 am UK time; details of which can be obtained from FTI Consulting (see below).

Notes to Editors

Oxford Catalysts enables modular Gas-to-Liquids ("GTL") plants to convert unconventional, remote and problem gas into valuable liquid fuels. Systems based on the Group's technology (marketed under the brand name Velocys) are significantly smaller than those using conventional technology, enabling modular plants that can be deployed cost effectively in remote locations and on smaller fields than is possible with competing systems. Together with world-class partners, Oxford Catalysts provides complete modular GTL solutions that address an untapped market of up to 25 million barrels of fuel a day.

Oxford Catalysts Group PLC is listed on the AIM market of the London Stock Exchange (LSE: OCG). The Group has some 85 employees with facilities near Oxford, UK and Columbus, Ohio, USA.

http://www.oxfordcatalysts.com

http://www.velocys.com

About Ventech

Ventech Engineers LLC is a global leader in the design and construction of modular refineries, plant relocations, and specialised market appraisals for the refining industry. It has offices in Texas, Moscow, and the Philippines.

http://www.ventech-eng.com

 

For further information, please contact:

Oxford Catalysts
Roy Lipski, CEO
Susan Robertson, CFO
+44(0)20-7831-3113
+1-614-733-3300

Cenkos Securities (Nomad and Broker)
Ken Fleming / Neil McDonald
+44(0)20-7397-8900
+44(0)131-220-9772

FTI Consulting
Billy Clegg / Alex Beagley
+44(0)20-7831-3113

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
The deluge of IoT sensor data collected from connected devices and the powerful AI required to make that data actionable are giving rise to a hybrid ecosystem in which cloud, on-prem and edge processes become interweaved. Attendees will learn how emerging composable infrastructure solutions deliver the adaptive architecture needed to manage this new data reality. Machine learning algorithms can better anticipate data storms and automate resources to support surges, including fully scalable GPU-c...
Adding public cloud resources to an existing application can be a daunting process. The tools that you currently use to manage the software and hardware outside the cloud aren’t always the best tools to efficiently grow into the cloud. All of the major configuration management tools have cloud orchestration plugins that can be leveraged, but there are also cloud-native tools that can dramatically improve the efficiency of managing your application lifecycle. In his session at 18th Cloud Expo, ...
When applications are hosted on servers, they produce immense quantities of logging data. Quality engineers should verify that apps are producing log data that is existent, correct, consumable, and complete. Otherwise, apps in production are not easily monitored, have issues that are difficult to detect, and cannot be corrected quickly. Tom Chavez presents the four steps that quality engineers should include in every test plan for apps that produce log output or other machine data. Learn the ste...
Using new techniques of information modeling, indexing, and processing, new cloud-based systems can support cloud-based workloads previously not possible for high-throughput insurance, banking, and case-based applications. In his session at 18th Cloud Expo, John Newton, CTO, Founder and Chairman of Alfresco, described how to scale cloud-based content management repositories to store, manage, and retrieve billions of documents and related information with fast and linear scalability. He addresse...
A valuable conference experience generates new contacts, sales leads, potential strategic partners and potential investors; helps gather competitive intelligence and even provides inspiration for new products and services. Conference Guru works with conference organizers to pass great deals to great conferences, helping you discover new conferences and increase your return on investment.
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
With more than 30 Kubernetes solutions in the marketplace, it's tempting to think Kubernetes and the vendor ecosystem has solved the problem of operationalizing containers at scale or of automatically managing the elasticity of the underlying infrastructure that these solutions need to be truly scalable. Far from it. There are at least six major pain points that companies experience when they try to deploy and run Kubernetes in their complex environments. In this presentation, the speaker will d...
Containers and Kubernetes allow for code portability across on-premise VMs, bare metal, or multiple cloud provider environments. Yet, despite this portability promise, developers may include configuration and application definitions that constrain or even eliminate application portability. In this session we'll describe best practices for "configuration as code" in a Kubernetes environment. We will demonstrate how a properly constructed containerized app can be deployed to both Amazon and Azure ...
We are seeing a major migration of enterprises applications to the cloud. As cloud and business use of real time applications accelerate, legacy networks are no longer able to architecturally support cloud adoption and deliver the performance and security required by highly distributed enterprises. These outdated solutions have become more costly and complicated to implement, install, manage, and maintain.SD-WAN offers unlimited capabilities for accessing the benefits of the cloud and Internet. ...
Business professionals no longer wonder if they'll migrate to the cloud; it's now a matter of when. The cloud environment has proved to be a major force in transitioning to an agile business model that enables quick decisions and fast implementation that solidify customer relationships. And when the cloud is combined with the power of cognitive computing, it drives innovation and transformation that achieves astounding competitive advantage.
SYS-CON Events announced today that Silicon India has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Published in Silicon Valley, Silicon India magazine is the premiere platform for CIOs to discuss their innovative enterprise solutions and allows IT vendors to learn about new solutions that can help grow their business.
DXWorldEXPO LLC announced today that "IoT Now" was named media sponsor of CloudEXPO | DXWorldEXPO 2018 New York, which will take place on November 11-13, 2018 in New York City, NY. IoT Now explores the evolving opportunities and challenges facing CSPs, and it passes on some lessons learned from those who have taken the first steps in next-gen IoT services.
In this presentation, you will learn first hand what works and what doesn't while architecting and deploying OpenStack. Some of the topics will include:- best practices for creating repeatable deployments of OpenStack- multi-site considerations- how to customize OpenStack to integrate with your existing systems and security best practices.
SYS-CON Events announced today that CrowdReviews.com has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5–7, 2018, at the Javits Center in New York City, NY. CrowdReviews.com is a transparent online platform for determining which products and services are the best based on the opinion of the crowd. The crowd consists of Internet users that have experienced products and services first-hand and have an interest in letting other potential buye...
You want to start your DevOps journey but where do you begin? Do you say DevOps loudly 5 times while looking in the mirror and it suddenly appears? Do you hire someone? Do you upskill your existing team? Here are some tips to help support your DevOps transformation. Conor Delanbanque has been involved with building & scaling teams in the DevOps space globally. He is the Head of DevOps Practice at MThree Consulting, a global technology consultancy. Conor founded the Future of DevOps Thought Leade...