Quadrise PLC (AIM:QED) has launched a placing and open offer to raise at least £1mln ahead of expected first commercial revenues from its lead projects.
Priced at 1.25p per share, both placing and offer will raise no more than £3.25mln.
The placing aims to raise at least £1mln and no more than £1.75mln, with the open offer launched afterwards looking to raise up to £2.25mln.
Quadrise said it is keeping a focus on its key projects in Morocco, Utah and with Mediterranean Shipping Co (MSC) “as the most efficient use of our financial resources and provide the fastest and most material pathways to commercialisation”.
It expects commercial revenues in the third quarter of the year from Valkor in Utah once it has received approval for its drilling permits and financing.
“This is a critical milestone in attracting new customers, investors and strategic partners,” Quadrise said.
It said the minimum placing proceeds and existing cash resources are expected to provide sufficient funds to progress current operations and active projects until the end of next February, with the maximum placing taking it through to end-June and if the open offer is fully subscribed, through to the generation of profit and positive cashflows, based on currently anticipated milestones.
Project updates
Quadrise also provided some updates on the timing of its key projects.
Progress was reported with MSC on preparatory work to enable the fuel trials of both bioMSAR and MSAR on board the MSC Leandra, with testing specialists Wärtsilä moving to a hazard identification and operability study of bioMSAR prior to use on the vessel's 2-stroke main engine that is expected to be completed in the current quarter.
Quadrise said it is having discussions with potential feedstock suppliers for the trial, "with the intention to conclude tripartite agreements with a fuel supplier and MSC as soon as possible", with the intention to begin commercial-scale proof-of-concept and LONO trials on bioMSAR in the first half of 2024.
In Utah, Valkor Technologies will pay Quadrise International Ltd (QIL) US$1mln once it receives drilling and underground injection permits from the Utah Department of Oil, Gas and Mining and raises project financing of at least US$15mln for its project at Asphalt Ridge in the state.
Valkor, which is paying for the exclusive right and licence to produce Quadrise's MSAR and bioMSAR emulsion technology and to market the fuel on a non-exclusive basis from the state, will pay QIL a further US$0.5mln upon delivery of an MSAR manufacturing unit (MMU) to the project and a quarterly retainer for ongoing engineering and other support services.
Quadrise said Valkor expects the necessary drilling and underground injection permits to be awarded in August, with drilling to start as soon as weather permits, with produced heavy oil available for conversion to bioMSAR and MSAR for trials later in 2023.
The fuel trial in Morocco is set for resumption this month, with results expected shortly after completion of testing and joint review with the client.