Enviro expects final partnership agreement with Michelin during the fourth quarter
Enviro Michelin Agreement Delayed
Scandinavian Enviro Systems and Michelin expect that a final agreement regarding a strategic partnership is expected to be reached during the fourth quarter 2020 instead of before the end of October, which Enviro has previously communicated. The reason for the delay is the ongoing pandemic which has led to protracted negotiations.
Despite the fact that the pandemic has made it more difficult to hold regular face-to-face meetings, the negotiations have continued, and progress has been made.
“Both parties are determined to complete our letter of intent by reaching a final agreement as soon as possible. Both Enviro and Michelin continue to see a great potential in a strategic partnership, and we expect to sign a final agreement during the fourth quarter this year”, says Alf Blomqvist, Chairman of Enviro.
The negotiations have been ongoing since April 15 when Enviro and Michelin announced that they had signed a letter of intent regarding a strategic partnership. In connection with this, Enviro conducted and finalised a directed share issue (private placement) 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 shareholder in Enviro.
The parties have agreed that the partnership, in addition to the directed share issue, will comprise the following three main axes that were communicated earlier:
- A Development Agreement to deploy Enviro's pyrolysis technology on a larger scale
- A shared project to build a factory to industrialise the technology. The location of the plant will be confirmed at a later date.
- A joint Supply Agreement between Michelin and Enviro