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
Bill Schmarzo, author of "Big Data: Understanding How Data Powers Big Business" and "Big Data MBA: Driving Business Strategies with Data Science," is responsible for setting the strategy and defining the Big Data service offerings and capabilities for EMC Global Services Big Data Practice. As the CTO for the Big Data Practice, he is responsible for working with organizations to help them identify where and how to start their big data journeys. He's written several white papers, is an avid blogge...
"We are a well-established player in the application life cycle management market and we also have a very strong version control product," stated Flint Brenton, CEO of CollabNet,, in this SYS-CON.tv interview at 18th Cloud Expo at the Javits Center in New York City, NY.
DXWorldEXPO LLC announced today that Dez Blanchfield joined the faculty of CloudEXPO's "10-Year Anniversary Event" which will take place on November 11-13, 2018 in New York City. Dez is a strategic leader in business and digital transformation with 25 years of experience in the IT and telecommunications industries developing strategies and implementing business initiatives. He has a breadth of expertise spanning technologies such as cloud computing, big data and analytics, cognitive computing, m...
One of the biggest challenges with adopting a DevOps mentality is: new applications are easily adapted to cloud-native, microservice-based, or containerized architectures - they can be built for them - but old applications need complex refactoring. On the other hand, these new technologies can require relearning or adapting new, oftentimes more complex, methodologies and tools to be ready for production. In his general session at @DevOpsSummit at 20th Cloud Expo, Chris Brown, Solutions Marketi...
At the keynote this morning we spoke about the value proposition of Nutanix, of having a DevOps culture and a mindset, and the business outcomes of achieving agility and scale, which everybody here is trying to accomplish," noted Mark Lavi, DevOps Solution Architect at Nutanix, in this SYS-CON.tv interview at @DevOpsSummit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
HyperConvergence came to market with the objective of being simple, flexible and to help drive down operating expenses. It reduced the footprint by bundling the compute/storage/network into one box. This brought a new set of challenges as the HyperConverged vendors are very focused on their own proprietary building blocks. If you want to scale in a certain way, let's say you identified a need for more storage and want to add a device that is not sold by the HyperConverged vendor, forget about it...
Enterprises are moving to the cloud faster than most of us in security expected. CIOs are going from 0 to 100 in cloud adoption and leaving security teams in the dust. Once cloud is part of an enterprise stack, it’s unclear who has responsibility for the protection of applications, services, and data. When cloud breaches occur, whether active compromise or a publicly accessible database, the blame must fall on both service providers and users. In his session at 21st Cloud Expo, Ben Johnson, C...
It is of utmost importance for the future success of WebRTC to ensure that interoperability is operational between web browsers and any WebRTC-compliant client. To be guaranteed as operational and effective, interoperability must be tested extensively by establishing WebRTC data and media connections between different web browsers running on different devices and operating systems. In his session at WebRTC Summit at @ThingsExpo, Dr. Alex Gouaillard, CEO and Founder of CoSMo Software, presented ...
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.
As you move to the cloud, your network should be efficient, secure, and easy to manage. An enterprise adopting a hybrid or public cloud needs systems and tools that provide: Agility: ability to deliver applications and services faster, even in complex hybrid environments Easier manageability: enable reliable connectivity with complete oversight as the data center network evolves Greater efficiency: eliminate wasted effort while reducing errors and optimize asset utilization Security: implemen...
Your homes and cars can be automated and self-serviced. Why can't your storage? From simply asking questions to analyze and troubleshoot your infrastructure, to provisioning storage with snapshots, recovery and replication, your wildest sci-fi dream has come true. In his session at @DevOpsSummit at 20th Cloud Expo, Dan Florea, Director of Product Management at Tintri, provided a ChatOps demo where you can talk to your storage and manage it from anywhere, through Slack and similar services with...
Most people haven’t heard the word, “gamification,” even though they probably, and perhaps unwittingly, participate in it every day. Gamification is “the process of adding games or game-like elements to something (as a task) so as to encourage participation.” Further, gamification is about bringing game mechanics – rules, constructs, processes, and methods – into the real world in an effort to engage people. In his session at @ThingsExpo, Robert Endo, owner and engagement manager of Intrepid D...
Recently, WebRTC has a lot of eyes from market. The use cases of WebRTC are expanding - video chat, online education, online health care etc. Not only for human-to-human communication, but also IoT use cases such as machine to human use cases can be seen recently. One of the typical use-case is remote camera monitoring. With WebRTC, people can have interoperability and flexibility for deploying monitoring service. However, the benefit of WebRTC for IoT is not only its convenience and interopera...
Evan Kirstel is an internationally recognized thought leader and social media influencer in IoT (#1 in 2017), Cloud, Data Security (2016), Health Tech (#9 in 2017), Digital Health (#6 in 2016), B2B Marketing (#5 in 2015), AI, Smart Home, Digital (2017), IIoT (#1 in 2017) and Telecom/Wireless/5G. His connections are a "Who's Who" in these technologies, He is in the top 10 most mentioned/re-tweeted by CMOs and CIOs (2016) and have been recently named 5th most influential B2B marketeer in the US. H...
Michael Maximilien, better known as max or Dr. Max, is a computer scientist with IBM. At IBM Research Triangle Park, he was a principal engineer for the worldwide industry point-of-sale standard: JavaPOS. At IBM Research, some highlights include pioneering research on semantic Web services, mashups, and cloud computing, and platform-as-a-service. He joined the IBM Cloud Labs in 2014 and works closely with Pivotal Inc., to help make the Cloud Found the best PaaS.