SulNOx Group announced the signing of a significant agreement with Eastern Pacific Shipping Pte Ltd ("EPS"), one of the world's largest privately-owned shipping companies. This agreement encompasses both investment into SulNOx and a major new product supply contract for its SulNOxEcoTM fuel conditioner ("SulNOxEco"). The agreement follows an extensive eight-month successful evaluation of SulNOxEco on various EPS-managed vessels including container ships, tankers, bulk and gas carriers.
Under the agreement, EPS will adopt SulNOxEco on a minimum of 30 vessels for a minimum of 18 months use per vessel. EPS will also provide information in relation to the results of the evaluation, which SulNOx will be able to use in its marketing activities, along with the ongoing support of EPS. In addition, EPS will also collaborate with and act as an introducer for SulNOxEco, to some of the world's largest shipping companies.
The agreement itself will generate significant revenue and secure committed minimum product volumes of 250,000 litres. Further, the Board anticipates attracting additional customers and driving substantial further revenue growth.
In addition, EPS Ventures Pte. Ltd. ("EPSV") will become a strategic shareholder in SulNOx. EPSV will subscribe for a total of up to 11,692,025 new ordinary 2 pence shares at a price of 2 pence per Ordinary Share in tranches to be issued on the payment for purchase of SulNOxEco by EPS during the initial 18 months of the agreement. The proceeds from the subscription will be used for general working capital purposes. Once fully issued, the subscription shares would equate to a maximum of 8.5% of the enlarged issued Ordinary Shares (assuming no other issues of Ordinary Shares).
EPSV will also subscribe for a total of up to a further 4,719,795 Ordinary Shares at a price of 2 pence per Ordinary Share over a maximum of 3 years based on successful introductions of large shipping customers to SulNOx. This would equate to a maximum further 3.3% of the enlarged issued Ordinary Shares (assuming the completion of the Subscription but no other issues of Ordinary Shares).
Cyril Ducau, Chief Executive Officer of EPS commented, "This partnership with SulNOx is a significant step towards achieving EPS's long-term sustainability objectives. By enhancing our operational efficiency and reinforcing our commitment to meeting global environmental standards, this collaboration further solidifies our position as a proactive leader in sustainable shipping practices."
Radu Florescu, Chairman of SulNOx, added, "Signing the marquee shipping name of EPS after an extensive evaluation period proves the effectiveness of SulNOx products beyond doubt at a time when the industry is crying out for solutions to reduce fuel consumption and associated emissions against a backdrop of increasing regulation. With this partnership, not only have we secured substantial, committed revenues, but there is also significant additional potential revenue from EPS' introductions to some of the world's largest fleets. This transaction marks a new and transformative era for the SulNOx Group, and we look forward to a long and mutually beneficial partnership with EPS, delivering the energy transition together."
Established in 1964 and headquartered in Singapore, EPS employs approximately 6,000 people worldwide and manages a diverse fleet of over 300 vessels on water and on order.