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
Enterprise architects are increasingly adopting multi-cloud strategies as they seek to utilize existing data center assets, leverage the advantages of cloud computing and avoid cloud vendor lock-in. This requires a globally aware traffic management strategy that can monitor infrastructure health across data centers and end-user experience globally, while responding to control changes and system specification at the speed of today’s DevOps teams. In his session at 20th Cloud Expo, Josh Gray, Chie...
Internet-of-Things discussions can end up either going down the consumer gadget rabbit hole or focused on the sort of data logging that industrial manufacturers have been doing forever. However, in fact, companies today are already using IoT data both to optimize their operational technology and to improve the experience of customer interactions in novel ways. In his session at @ThingsExpo, Gordon Haff, Red Hat Technology Evangelist, shared examples from a wide range of industries – including en...
In IT, we sometimes coin terms for things before we know exactly what they are and how they’ll be used. The resulting terms may capture a common set of aspirations and goals – as “cloud” did broadly for on-demand, self-service, and flexible computing. But such a term can also lump together diverse and even competing practices, technologies, and priorities to the point where important distinctions are glossed over and lost.
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. Jack Norris reviews best practices to show how companies develop, deploy, and dynamically update these applications and how this data-first...
Intelligent Automation is now one of the key business imperatives for CIOs and CISOs impacting all areas of business today. In his session at 21st Cloud Expo, Brian Boeggeman, VP Alliances & Partnerships at Ayehu, will talk about how business value is created and delivered through intelligent automation to today’s enterprises. The open ecosystem platform approach toward Intelligent Automation that Ayehu delivers to the market is core to enabling the creation of the self-driving enterprise.
"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.
"We're here to tell the world about our cloud-scale infrastructure that we have at Juniper combined with the world-class security that we put into the cloud," explained Lisa Guess, VP of Systems Engineering at Juniper Networks, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
In his session at 20th Cloud Expo, Mike Johnston, an infrastructure engineer at Supergiant.io, discussed how to use Kubernetes to set up a SaaS infrastructure for your business. Mike Johnston is an infrastructure engineer at Supergiant.io with over 12 years of experience designing, deploying, and maintaining server and workstation infrastructure at all scales. He has experience with brick and mortar data centers as well as cloud providers like Digital Ocean, Amazon Web Services, and Rackspace. H...
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
Consumers increasingly expect their electronic "things" to be connected to smart phones, tablets and the Internet. When that thing happens to be a medical device, the risks and benefits of connectivity must be carefully weighed. Once the decision is made that connecting the device is beneficial, medical device manufacturers must design their products to maintain patient safety and prevent compromised personal health information in the face of cybersecurity threats. In his session at @ThingsExpo...
SYS-CON Events announced today that Grape Up will exhibit at 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. Grape Up is a software company specializing in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the U.S. and Europe, Grape Up works with a variety of customers from emergi...
Detecting internal user threats in the Big Data eco-system is challenging and cumbersome. Many organizations monitor internal usage of the Big Data eco-system using a set of alerts. This is not a scalable process given the increase in the number of alerts with the accelerating growth in data volume and user base. Organizations are increasingly leveraging machine learning to monitor only those data elements that are sensitive and critical, autonomously establish monitoring policies, and to detect...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
SYS-CON Events announced today that Massive Networks will exhibit at 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. Massive Networks mission is simple. To help your business operate seamlessly with fast, reliable, and secure internet and network solutions. Improve your customer's experience with outstanding connections to your cloud.