Sabien Technology Group PLC (AIM:SNT) shares jumped to 4.38p, up 59% in early London trade, after the company scrapped a proposed £2 million financing framework to focus on a commercial partnership.
The energy efficiency technology provider abandoned the strategic investment plan initially announced in May 2026.
The cancelled framework included a proposed senior secured convertible loan note financing of up to £2 million, together with associated warrants.
The proposal would have involved the restructuring, refinancing or conversion of relevant Parris Group Limited (PGL) debt and invoice-financing arrangements.
It also included a secondary transaction under which a proposed strategic investor group would have acquired the shareholding held by Richard Parris and associated parties.
PGL will retain its existing shareholding in Sabien and continues to provide financial support under the group’s existing arrangements, although no new binding funding commitment has been entered into.
Sabien remains in constructive discussions with Haydale Plc and Intelligent Resource Management Limited, trading as SaveMoneyCutCarbon (SMCC), on a definitive UK distribution and implementation agreement for its M2G technology platform.
The M2G system is an intelligent boiler optimisation platform, which Sabien describes as an energy efficiency technology.
The parties have exchanged detailed contractual proposals and are working towards terms capable of approval by their respective boards.
No definitive agreement has yet been reached, and material commercial and legal terms remain under negotiation.
The company said these discussions are not conditional on an equity investment, transfer of the PGL shareholding, or completion of the previously announced financing framework.
Regarding the City Oil Field (COF) opportunity, Sabien retains its existing contractual and economic interests while b.grn Group Limited (b.grn) funds the associated operating expenditure.
Sabien is not contributing cash or committing to additional funding during the review period.
Richard Parris said this approach maintains Sabien’s commercial optionality without creating a current operating cash requirement for the company.
Sabien will determine in due course whether to participate in future b.grn funding rounds to seek to maintain its current equity interest or allow that interest to be diluted.
No decision has been made on further investment, dilution, disposal or restructuring.
Under its existing sales agency agreement, Sabien continues to engage with prospective counterparties in multiple continents on potential applications of the COF technology, but no definitive commercial agreement has been entered into.
The primary strategic focus for the board remains the commercial deployment of the M2G platform and the development of recurring software revenues.
As previously announced, Richard Parris intends at an appropriate point to transition from executive chairman to non-executive chair.
The timing will be determined by the board, having regard to the company's commercial progress, executive leadership requirements and the need to ensure an orderly succession.
There is currently no fixed timetable, and no decision has been made regarding the executive leadership arrangements that would accompany any such transition.
