Scandinavian Enviro Systems and Michelin, have prolonged the letter of intent regarding a strategic partnership which was announced in April 2020. Initially the parties expected that a final agreement would have been reached by mid-year 2020, but the negotiations have been somewhat delayed, partly due to the ongoing pandemic.
Enviro and Michelin Prolong Letter of Intent
Therefore, Enviro and Michelin are prolonging the letter of intent until the end of October this year where both companies assess that they will be able to provide more details at the latest. Simultaneously the exclusivity agreement is also prolonged until October 31 this year.
In connection with the letter of intent, Enviro conducted and finalised a directed share issue of approximately SEK 32.5 million to Michelin, corresponding to ownership of 20 per cent after the completed issue, which Michelin subscribed for through its wholly owned subsidiary Michelin Ventures SAS. Following the completion of the issue at the end of April, Michelin became the largest owner of Enviro.
After the letter of intent was signed, the companies initiated more detailed negotiations in each of the main points and, although the negotiations have proceeded well, the parties have not succeeded in keeping to the schedule as announced previously.
“Our negotiations are continuing with undiminished strength, but factors including the ongoing pandemic, with the accompanying travel restrictions, have meant that we have been unable to proceed as quickly as we had hoped. Therefore, we have jointly decided to prolong our letter of intent until the end of October this year, and our joint assessment is that we will be able to provide new information at the end of October this year at the latest,” says Thomas Sörensson, CEO of Enviro.